Godawari Power & Ispat is mainly engaged in the business of Mining of Iron Ore and Manufacturing of Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B. Wire and Ferro Alloys with generation of Electricity.
The Board of Directors of Godawari Power and Ispat Limited (the Company) has approved a proposal to acquire a 60% equity stake in R. G. Pigments Private Limited (RGP) for a consideration of Rs. 56.75 Crores. The transaction is expected to be completed on or before March 31st, 2025.
RGP is engaged in the business of recycling non-ferrous metals industrial waste and has an existing capacity of 7,500 MT per annum in Kota, Rajasthan. The company plans to expand its capacity to 32,500 MTPA in Kota, Rajasthan. RGP was incorporated on February 7th, 1996.
The acquisition will be completed through a cash consideration in exchange for the allotment of fresh equity shares by RGP. The cost of acquisition is Rs. 56.75 Crores for a 60% stake in the company.
Godawari Power and Ispat Limited views this acquisition as a way to diversify its business activities into the recycling of non-ferrous metal industrial waste. No governmental or regulatory approvals are required for the acquisition.
RGP’s turnover for the past three years was:
- Rs. 40.03 Crores in fiscal year 2021-22
- Rs. 37.88 Crores in fiscal year 2022-23
- Rs. 46.70 Crores in fiscal year 2023-24