Murugappa Group’s engineering firm Tube Investment of India (TII) is raising Rs 350 crore in capital from Azim Premji Trust and two schemes of SBI Mutual Fund, the company said on Thursday. The fund raise is part of the group’s plan to raise equity to fund its acquisition of CG Power. The shares were placed at Rs 731.7 apiece against Thursday’s close of Rs 815. CG Power’s board approved the allotment of shares and warrants to TII. “We inform that the Company has acquired a controlling interest and holds 50.62%,” TII said in a statement. With this CG Power will become a subsidiary of TII and the Murugappa group management has recalled its former finance director, N Srinivasan to head CG Power as its MD. An extraordinary general meeting is shareholders of TII is convened on December 21 for the placement of the shares. TII’s board has approved the allotment of shares on a preferential basis to both parties and the issue is subject to shareholders approval, TII said in a stock exchange filing. As per the filing, Azim Premji Trust will be allotted 27.33 lakh shares worth Rs 200 crore, while the two SBI MF schemes – SBI Focused Equity Fund and SBI Magnum Midcap Fund – will get 15.03 lakhs share and 5.46 lakh shares worth Rs 110 crore and Rs 40 crore respectively.
- Tube Investments to raise Rs 350 crore from Premji Trust and SBI MF