Tube Investments strikes gold with CG Power and Vistara puzzle in Tatas’ AI deal
Why read this story?
Editor's note: Furquan here. I hope the year has begun well for you. It surely has for Tube Investments. Just take a look at how its fortunes have soared with the acquisition of CG Power. But there’s a question mark. Just like the one hovering over Vistara, which got a new CEO on 1 January. Read on. Fortune favours the brave A stroke of luck or a well-planned strategy. One doesn’t know what led Tube Investments of India Limited—part of the Chennai-based Murugappa Group—to acquire CG Power in 2020, but the company has surely struck gold. CG Power’s lenders, including State Bank of India, Axis Bank and ICICI Bank, had wanted to get rid of the debt-ridden and scam-hit company. They opted for a Swiss Challenge bidding process. For the uninitiated, the Swiss Challenge bidding process, often used in public projects, is one in which an interested party initiates a proposal for a contract or a bid for a project. The government then puts the details of the project out in the public and invites proposals from others interested in executing it. …
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