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CG Power jumps 7% after Wednesday’s selloff

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NEW DELHI: Shares of CG Power and Industrial Solutions witnessed strong volatility as the scrip surged over 7 per cent after plunging 10 per cent in Thursday’s session.

The scrip shed about a third of its value on Wednesday. Promoters of the company have adjusted loans against royalty dues and wrote off significant receivables at the manufacturer of power generation and distribution equipment.

The combined impact of a provision against receivables and write-offs resulted in the company posting a net loss of Rs 150 crore in the December quarter.

The inability to sell loss-making operations in Hungary further roiled investors, sending the stock to its biggest single-day decline on Wednesday.

However, the counter saw some buying interest in Thursday’s session since the investors could have judged the fall in stock price as excessive.

Shares of the company traded 4.63 per cent up at Rs 24.85 on BSE around 10:30 am.

Source: Economic Times