Godawari Power & Ispat Limited (GPIL) Secures 51% Stake in Jammu Pigments Limited (JPL)
Godawari Power & Ispat Limited (GPIL) has acquired a controlling 51% stake in Jammu Pigments Limited (JPL), a leading entity in the non-ferrous metal recycling sector. Finalized on January 1, 2025, this acquisition underscores GPIL’s strategic intent to diversify its operations and capitalize on the expanding recycling industry.
Acquisition Details
The acquisition unfolded in two stages:
- Phase 1: On November 20, 2024, GPIL initially acquired a 49% stake in JPL. This involved a combination of a primary infusion in exchange for compulsory convertible preference shares and a secondary purchase from existing promoters.
- Phase 2: The remaining 2% stake, comprising 336,069 equity shares, was secured on January 1, 2025, at Rs. 297 per share. This purchase amounted to a total cost of Rs. 9.98 crores, bringing GPIL’s total ownership to 51%.
JPL’s Expertise and Operations
JPL is a prominent player in the recycling of non-ferrous metals. Its core operations include processing lead-acid batteries and secondary lead waste, along with handling complex industrial waste to recover valuable metals like lead, tin, zinc, copper, and cadmium. Leveraging advanced technology and cost-efficient practices, JPL has positioned itself as a leader in this environmentally critical industry.
Financial Performance of JPL
JPL’s financial trajectory highlights its consistent growth:
- FY 2021-22: Rs. 825.70 crores
- FY 2022-23: Rs. 1013.38 crores
- FY 2023-24: Rs. 1173.78 crores
This robust financial performance adds significant strategic value to GPIL’s acquisition.
Strategic Advantages and Future Outlook
The acquisition offers GPIL a foothold in the burgeoning non-ferrous metal recycling market, an industry poised for exponential growth due to rising environmental concerns and demand for these metals. By integrating JPL’s expertise, GPIL aims to establish a strong presence in this high-potential sector.
Key Acquisition Highlights:
- GPIL now holds a 51% controlling stake in JPL.
- The acquisition was completed in two phases, concluding on January 1, 2025.
- The final 2% stake cost Rs. 9.98 crores.
- JPL is a leader in the recycling of non-ferrous metals.
- The move aligns with GPIL’s strategy to diversify and enter a high-growth market.
- No regulatory or governmental approvals were needed for the acquisition.
This strategic acquisition marks a pivotal moment for GPIL, reflecting its commitment to innovation, diversification, and growth in the dynamic non-ferrous metal recycling industry.