Godawari Power rises 3% as co to acquire 51% stake in JPL for Rs 255 cr

The increase in the Godawari Power & Ispat stock price follows the announcement that its board of directors approved the acquisition of a 51 per cent stake in Jammu Pigments (JPL) for Rs 255 crore

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Godawari Power & Ispat share price: Shares of Godawari Power & Ispat (GPIL) rose up to 2.77 per cent to hit an intraday high of Rs 191.15 per share on Thursday, November 21, 2024. 

 

The increase in the Godawari Power & Ispat stock price follows the announcement that its board of directors approved the acquisition of a 51 per cent stake in Jammu Pigments Limited (JPL) for Rs 255 crore on a fully diluted basis.

 

The deal is subject to the execution of transaction documents and the fulfilment of certain conditions before it can be finalised. 

 

B L Agrawal, managing director of GPIL, said, "GPIL's strategic acquisition of a majority stake in JPL aligns with its ESG objectives, advancing its commitment to portfolio diversification and environmental sustainability. This move not only strengthens GPIL’s asset base but also mitigates risk and unlocks new market opportunities, underscoring the company's dedication to responsible growth. We are confident this acquisition will drive sustained growth and deliver significant value to all stakeholders.”  

 

Jammu Pigments engages in the recycling of non-ferrous metals, including the recycling of lead-acid batteries and other secondary lead waste. The company also processes complex mixtures of hazardous industrial waste to recover valuable metals such as lead, tin, zinc, copper, and cadmium.

 

JPL is equipped with advanced technology for the efficient extraction of trace metals from waste, ensuring cost-effective operations. It operates manufacturing units in Kathua, Jammu & Kashmir (J&K), and Kota, Rajasthan, with subsidiaries that are wholly owned by JPL.

 

Godawari Power's acquisition aims to diversify its business portfolio into the emerging non-ferrous metals recycling industry, which offers significant growth opportunities. 

 

The transaction is expected to be completed by March 31, 2025, in one or more tranches.

 

Additionally, the company’s board has decided to cancel a previously approved acquisition of a 74 per cent stake in RG Pigments (RGPL), a wholly owned subsidiary of JPL. RGPL will remain a 100 per cent subsidiary of JPL.

 

Godawari Power & Ispat is the flagship company of Chhattisgarh-based Hira Group of Industries, with operations including two captive iron ore mines, a pellet plant, and a vertically integrated steel plant in Raipur, producing products such as sponge iron, billets, MS rounds, HB wires, ferro alloys, and pre-fabricated structures.

 

At 10:14 AM, Godawari Power & Ispat shares were trading 2.23 per cent lower at Rs 181.85 per share. In comparison, BSE Sensex was trading 0.71 per cent lower at 77,031.06 levels.