Godawari Power to go for Rs 301 crore share buyback

18 Jun 2024 , 11:07 AM

On June 15, the Board of Godawari Power and Ispat approved a buyback of up to 21.5 lakh fully paid-up equity shares at ₹1,400 per share.

The ₹301 crore buyback equals up to 1.64% of the company’s total paid-up equity share capital as of March 31, 2024 (excluding 45 lakh equity shares held by the Trust in Treasury), according to an exchange filing.

According to the regulatory filing, the buyback will be conducted on a proportionate basis from the company’s equity shareholders/beneficial owners as of Friday, June 28, 2024 (record date). This guarantees a fair and equitable distribution of the buyback offer.

Last year, Godawari Power and Ispat used a tender offer to buy back up to ₹250 Crore of their shares.

The board approved the buyback of 50 lakh equity shares at a face value of ₹5, accounting for 3.66% of the total equity shares. The buyback price is set at ₹500 per share.

Godawari Power and Ispat are conducting a share buyback, which entails the corporation repurchasing its shares from shareholders. This strategy is regarded as tax-efficient, giving an advantageous means of repaying cash to investors.

This practice reduces the number of shares accessible on the market, raising the intrinsic value of the remaining stock.

Godawari Power & Ispat is primarily engaged in the mining and manufacturing of iron ore pellets, sponge iron, steel billets, wire rods, H.B. wire, and ferro alloys, as well as the generation of electricity.

At around 11.03 AM, Godawari Power and Ispat was trading 3.34% higher at ₹1,114.85 per piece, against the previous close of ₹1,078.85 on NSE. The counter touched an intraday high and low of ₹1,174.50, and ₹1,102.55, respectively.

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