Shares of Godawari Power & Ispat are up over a percent as the company’s board on March 18 approved a share buyback plan of Rs 250 crore through the tender offer route.
At 9:17 am, shares of the company were trading 0.7 percent higher at Rs 391 on the BSE. From Rs 341.65 on February 27, the stock has risen to a high of Rs 393.35 today.
The company’s stock is up 4 percent YTD but in the past three years, it has shot up closer to 1,300 percent.
The board has given the nod to buy back 50 lakh equity shares of Rs 5 each face value, accounting for 3.66 percent of the total equity shares, the company informed the stock exchanges.
The buyback price has been fixed as "Rs 500 per share", which is over 22 percent higher than the last closing price.
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The aggregate amount to be spent for the share buyback, amounting to Rs 250 crore, represents 8.14 percent of the total paid-up equity share capital and 7.67 percent of the company's free reserves, as per the regulatory filing.
Godawari Power said that the planned buyback is within the statutory limit of 10 percent of the aggregate of the total paid-up equity share capital and free reserves of the company.
Godawari Power is a fully backward-integrated steel company with strong presence across the value chain—from operating captive iron-ore mines to manufacturing and selling value-added steel products. The company is one of the largest pellet manufacturers in India and India’s only manufacturer of high-grade pellets. In addition to pellets, the company manufactures sponge iron, long steel products, ferroalloys and green energy.
In Q3 of FY23, the company’s consolidated revenue fell 9 percent YoY to Rs 1,463 crore with EBITDA declining 65 percent to Rs 173.10 crore majorly because of lower realisations. Profit after tax also dropped around 68 percent for the December quarter to Rs 127.98 crore mainly on account of a fall in realisation.
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