Impact of fall in CG Power stock on MF schemes
Over last several months, many companies have been marking precipitous fall in their share prices. After IL&FS, Jet Airways, DHFL, and Café Day Enterprises, it’s now CG Power & Industrial Solutions that has posted almost 50 per cent loss in its market cap over last one month.
Huge loss in market cap of CG Power, part of the Avantha group (formerly controlled by Gautam Thapar) has been triggered by corporate governance violations that were revealed in a recent investigation by a board level meeting. According to their findings, some of the employees of the company deliberately understated the liability of the company to the tune of Rs. 1,608 crore and also did unauthorised pledging of the company’s shares.
Even the best of fund managers in the Indian mutual fund industry could not smell this and are holding this company’s share in their fund. However, not a single fund is holding shares of the company worth more than one per cent of their AUM and hence, the 90 per cent fall in the market cap of the company will not have significant impact on these funds.
Following are the funds that hold shares of CG Power & Industrial Solutions at the end of July 2019.
List of Funds
