CG Power and Industrial Solutions on Tuesday said its board has approved a proposal to allot 1.38 crore shares for Rs 101.20 crore to Standard Chartered Bank (Singapore) on a preferential basis for the settlement of liability toward the latter.

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The board has approved the issuance and allotment of 1,38,45,000 shares of the company of face value of Rs 2 each on a preferential basis at a price of Rs 73.10, including a premium of Rs 71.10 per equity share, aggregating to Rs 1,01,20,69,500 for consideration other than cash, it said in a BSE filing.

The allotment of shares is for settlement of liability of the company under the guarantee issued by it pursuant to the terms under the Guarantee Settlement Agreement, to Standard Chartered Bank (Singapore) Ltd (SCB), subject to the approval of the shareholders, it added.

It said CG Power had entered into an agreement in January 2018 under which it had guaranteed the payment/repayment obligations of CG International Holding Singapore Pte. Ltd, a wholly-owned subsidiary of the company, under the credit facilities aggregating to 44 million euros availed by CG Singapore from SCB.

The outstanding obligations of the company towards SCB under the guarantee agreement and other guarantee documents were agreed to be settled pursuant to an agreement dated November 13, 2020.

As per the guarantee agreement, the company was required to pay 3,664,682 euros to SCB; and issue and allot 1,38,45,000 equity shares of the company to SCB, a qualified institutional buyer.

The company also informed the BSE that an Extraordinary General Meeting of the members of the company will be held on June 7, 2021, seeking their approval for this preferential allotment. The relevant date for the purpose of determination of minimum price for the issue and allotment of equity shares is May 7, 2021, it added.

(Edited by : Jomy)