CG Power shares in focus as QIP kicks off; floor price, other details

Shares of CG Power and Industrial Solutions Ltd are in focus on Tuesday morning after the heavy electrical equipment manufacturer announced the launch of its Rs 3,000 crore qualified institutions placement (QIP) of equity shares with a face value of Rs 2 each.

The Securities Issue Committee of the company, at its meeting held on June 30, 2025, approved the floor price for the issue at Rs 679.08 per equity share, in line with the pricing formula prescribed under SEBI ICDR Regulations. This represents a 0.44 per cent discount to Monday’s closing price of Rs 679.08.

"We further wish to inform you that the ‘Relevant Date’ for the purpose of the Issue, in terms of Regulation 171(b) of the SEBI ICDR Regulations, is 30th June, 2025 and accordingly the Floor Price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is Rs 679.08 per Equity Share," it said. 

CG Power also stated that it may, at its discretion, offer a discount of not more than 5 per cent on the calculated floor price.

IIFL Capital Services Limited (formerly IIFL Securities Limited), DAM Capital Advisors Limited, and HSBC Securities and Capital Markets (India) Private Limited have been appointed as the Book Running Lead Managers (BRLMs) for the issue.

The issue price will be determined by the company in consultation with the BRLMs. The trading window, which is currently closed, will remain closed in connection with the issue.

In this regard, the preliminary placement document dated June 30, 2025, was filed with BSE Limited and the National Stock Exchange of India Limited on the same day.

CG Power and Industrial Solutions is an engineering conglomerate headquartered in
Mumbai, India. The company has two business lines - Industrial Systems and Power Systems. It manufactures traction motors, propulsion systems, signaling relays for the Indian Railways, and wide range of induction motors, drives, transformers, switchgears, and other allied products for the industrial and power sectors. 

Recently, CG Power and Industrial Solutions also made a foray into the business of
consumer appliances such as fans, pumps, and water heaters.

The company has manufacturing plants across nine locations in India and one in
Sweden, and a Pan India network of 5 Regional and 14 Branch offices, with around 3,113 employees. The Company’s consolidated revenue for FY25 stood Rs 9,909 crore 

Since November 2020, CG Power has become a part of the Murugappa Group.