Shares of CG Power and Industrial Solutions surged over 4.5 percent to hit an intra-day high of Rs 44.25 on the National Stock Exchange.

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The smallcap capital goods stock has risen more than 21 percent in the last one week, and 50 percent in the last one month. The one year-return on the stock remains negative though, with shares correcting by almost 47 percent.

An Economic Times report on Friday said that private equity major KKR and other lenders to the firm including Yes Bank and Bank of India AXA are in the process of converting their loans into equity.

KKR currently owns about 10.8 percent in the firm and a combined stake of the lenders is set to touch 30 percent if Yes Bank and others go ahead with their conversion, the report added.

As per December filings, the promoters own 34.42 percent of CG Power but around 32 percent of that is pledged with various financial institutions, the ET report further added.

Brokerage firm HSBC in its report on Wednesday recommended investors to hold the stock with a target price of Rs 34 per share after the management took a series of decisions to boost investor confidence.

In its report, HSBC said that the series of announcements made by CG Power management is a step in the right direction, but there is still a lot to be done.

Shares quoted at Rs 44.05, up by 4.51 percent at 10.42 AM. The broader NSE Nifty50 gained 70.60 points, or 0.62 percent, to trade at 11,413.85.

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