TVS, special situation funds in talks to infuse Rs 5 billion in CG Power

The TVS Group and a group of investors, including AION Capital, the India Resurgence Fund and SSG Capital Management, are in talks with CG Power and Industrial Solutions to invest Rs 5 billion in fresh equity in the company in order to work out a debt resolution plan. It has mandated SBI Capital Markets and Arpwood Capital to run a formal process for fund infusion into the company. CG Power had a debt of Rs 24.55 billion (fund based, including short-term loans) and Rs 13.8 billion (non-fund based) as on March 31, 2019. The deal, if successful, will mark TVS’s entry into the industrial electrical equipment market.