Godawari Power Completes Acquisition of Majority Stake in Jammu Pigments

Godawari Power & Ispat Lt has successfully completed the acquisition of a 51% stake in Jammu Pigments Ltd. on a fully diluted basis. This strategic move positions the steel manufacturer to diversify into the emerging business of non-ferrous metal recycling, creating opportunities for growth and sustainability.

Second Tranche Acquisition Details

The latest transaction involved acquiring an additional 2% stake, equivalent to 3,36,069 equity shares, from Jammu Pigments promoter Ramesh Kumar Agarwal for ₹9.98 crore. The shares, priced at ₹297 apiece, were acquired through a secondary purchase. This marks the second tranche of the acquisition, following the first tranche on November 20, 2024, when Godawari Power secured a 49% stake. The initial investment was made via a primary infusion against compulsory convertible preference shares and a secondary purchase from the promoters.

Strategic Benefits and Business Expansion

Jammu Pigments recycles non-ferrous metals, including lead-acid batteries and other secondary lead waste. The company’s operations span across manufacturing units in Jammu & Kashmir and Rajasthan, focusing on extracting valuable metals such as lead, tin, zinc, and copper from industrial waste. The acquisition allows Godawari Power to expand into this emerging sector, leveraging Jammu Pigments’ technical expertise to ensure cost-efficient operations. Notably, no regulatory approvals were required for the transaction, which is set to conclude by March 31, 2025.

Godawari Power Share Performance

As of January 02, 2024, 11:50 AM, shares of Godawari Power are trading at ₹210.39 per share, down by 1.39% from its previous day’s closing price. Over the last month, the stock has seen a surge of 9.19%. While over the year, the stock has surged by 34.78%. The stock has a 52-week high and 52-week low of ₹253.40 per share and ₹131.60 per share respectively.

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