Godawari Power and Ispat to Acquire 51% Stake in Jammu Pigments Limited
Godawari Power and Ispat Limited (GPIL) announced the acquisition of a 51% equity stake in Jammu Pigments Limited (JPL) for ₹255 crore. Approved by the Board of Directors on November 19, 2024, the transaction will be completed in multiple tranches by March 31, 2025.
About Jammu Pigments Limited:
JPL specializes in recycling non-ferrous metals such as lead from:
- Lead Acid Batteries
- Secondary lead waste
- Industrial waste
With manufacturing facilities in Kathua, Jammu & Kashmir, and Kota, Rajasthan, JPL employs advanced technology to extract trace metals efficiently and cost-effectively.
Acquisition Details:
GPIL will acquire the stake in two phases:
- Subscription of 58,92,256 Compulsory Convertible Preference Shares (CCPS) at ₹297 each, totaling ₹175 crore. These CCPS will be converted into equity shares after six months from allotment.
- Purchase of 26,77,507 equity shares from JPL’s promoters for ₹80 crore.
This acquisition aligns with GPIL’s strategic goal to diversify into the recycling of non-ferrous metals, a sector with promising growth potential. Notably, it does not involve related party transactions or require regulatory approvals.
JPL’s Financial Performance (in ₹ Crore):
| Financial Year | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| FY 21-22 | 825.70 | 37.84 | 11.41 |
| FY 22-23 | 1013.38 | 52.45 | 17.17 |
| FY 23-24 | 1173.78 | 75.25 | 26.98 |
