the group holds diversified interests in abrasives engineering farm inputs sugar confectionery plantations bioproducts chemicals nutraceuticals insurance and financial services new delhi exactly a year after founder gautam thapar was sacked as its chairman cg power and industrial solutions ltd is set to get a new promoter in murugappa group after its offer to invest rs 700 crore in the fraudhit firm found no challenger chennaibased murugappa group firm tube investments of india ltd tiil had earlier this month offered to invest rs 700 crore in cg power and industrial solutions ltd for a 566 per cent stake advt lenders to cg power which had defaulted on loan repayments since the fraud was detected in the firm last year launched a socalled swiss challenge to explore if any other eligible investor was willing to better the murugappas offer no counteroffer was received at the close of the bidding on august 26 two sources with direct knowledge of the development said lenders are not evaluating the murugappa offer and are likely to approve it later in the day they said while cg power is an established player in industrial motors and power components tube investments is the engineering arm of the rs 36900crore murugappa group a year back the board of cg power erstwhile known as crompton greaves had sacked founder gautam thapar as the company chairman as a direct fallout of unearthing of a multicrore financial fraud in august last year a boardinstituted investigation found major governance and financial lapses including some assets being provided as collateral and money from loans siphoned off by identified company personnel both current and past including certain nonexecutive directors thapar had denied any wrongdoing saying all intercorporate transactions were fully authorised by the board he was left with only 8574 shares out of 626 crore shares of the company at the time of the sacking after lenders involved pledges he had created on his erstwhile shareholding to borrow money advt as part of its investment proposal tube investments of india ltd will pay rs 550 crore for 642 crore equity shares of the company of the face value of rs 2 each at a price of rs 856 apiece according to regulatory filings by cg power further it will invest rs 150 crore more by subscribing to 175 crore warrants convertible into equity shares this investment was subject to tube investments being declared winner of the swiss challenge as well as lenders agreeing to restructure the debts of the company the filings showed tube investments has received approval from the competition commission of india for its investment into the company it added the investments by the murugappa group are to be used for currentfuture running and expansion of the business working capital general corporate purposes repayment of loans and for payment of interest for loans availed by the company cg power said tube investments will hold 8177 crore or 5661 per cent of cg power after the fund infusion since both the companies are