CG Power Block Trade: 3.75% Stake Changes Hands

CG Power & Industrial Solutions , a prominent player in the power and industrial equipment sector, witnessed a significant block trade on Thursday. Approximately 3.75% of the company's equity changed hands in a deal valued at around Rs 850.00 crore ($102.00 million).

Transaction Details

Market Impact

Following the news of this block trade, CG Power's stock experienced a notable decline:

• Stock Performance: Fell by 4.5%
• Closing Price: Rs 379.40 on the BSE

Recent Stock Performance

Despite the day's decline, it's worth noting that CG Power's stock has shown strong performance over the past year:

• 1-Year Return: Approximately 70% increase

Company Background

CG Power & Industrial Solutions is a well-established name in the power and industrial equipment sector. The company has been making strides in various segments of the industry, including:

• Power transmission
• Distribution equipment
• Industrial systems

Investor Implications

While block trades of this magnitude can often lead to short-term price fluctuations, long-term investors may consider focusing on:

1. The company's fundamental performance
2. Growth prospects in the power and industrial sectors
3. Any potential changes in the company's strategic direction following this ownership change

Conclusion

Investors and market watchers may keep a close eye on CG Power in the coming days to assess any further impact of this block trade on the company's stock price and to identify the parties involved in the transaction. As always, it's advisable for investors to conduct thorough research and consider their individual financial goals before making investment decisions based on such market movements.

CG Power & Industrial Solutions has received a substantial tax demand of ₹3.65 billion from the Income Tax Department for the assessment year 2018-19, corresponding to the financial year 2017-18. This development comes as part of the ongoing reassessment of the company's financials following a court order.

Tax Demand Details

The company disclosed the receipt of the final assessment order on November 19, 2025, which includes various disallowances and additions, resulting in the significant tax demand. The details of the assessment are as follows:

Company's Response

CG Power has stated that it is aggrieved by the order and is taking steps to file appeals against the additions and disallowances made by the tax authorities. The company believes it has a strong case based on substantial jurisprudence, rulings, and legal opinions, and expects a fair chance of succeeding in the appeal process.

Background

This tax demand is part of a larger reassessment process initiated following an order by the Bombay High Court on April 30, 2024. The court had directed the Central Board of Direct Taxes (CBDT) to allow CG Power to file revised income tax returns based on recast accounts for the financial years 2014-15 to 2019-20.

Potential Impact

The substantial tax demand may affect the company's financial obligations and could potentially impact its cash flow and financial planning. However, the final financial implications will depend on the outcome of the appeal process that the company intends to pursue.

Investor Considerations

Investors and stakeholders should note that this tax demand is subject to the appeals process, and the final liability may differ from the current demand. The company's ability to navigate this tax issue successfully will be crucial for its financial stability and future performance.

CG Power's management will likely provide further updates as the appeal process progresses. Investors are advised to monitor the company's future disclosures for more information on this matter and its potential impact on the company's financials.