Godawari Power and Ispat surges over 8% after operations resume at Chhattisgarh plant

Shares of Godawari Power and Ispat Limited gained over 8% on Wednesday, April 10, after the company said that it resumed full operations at its biomass power plant in Chhattisgarh following the disruption due to a fire incident.

In a stock exchange filing, Godawari Power and Ispat Limited said that its Chhattisgarh plant resumed operation on March 27, on a trial run basis. The full-scale operations at the plant were restored on April 8.

Following the announcement, Godawari Power and Ispat shares rallied as much as 8.78% to an intraday high of ₹823 apiece on the NSE, after a gap up opening at ₹768. However, the stock pared its early gains to close at ₹809.9 apiece, up 6.9% on NSE.

In August 2023, the company informed the stock exchanges about a fire incident at the 8 MW biomass power plant operated by its subsidiary Hira Ferro Alloys Ltd in Chhattisgarh. Operations at the plant were suspended after the fire accident.

Earlier this month, Godawari Power and Ispat Limited intimated the exchanges that its extra-ordinary general meeting (EGM) will be held on May 4 to consider the appointment of three independent non-executive directors and a proposal to alter the Article of Association of the company.

The company has diversified into renewable energy sector with the commissioning of a 50 MW solar thermal power project in Rajasthan through its subsidiary, Godawari Green Energy Ltd (GGEL), under the Jawaharlal Nehru National Solar Mission.

Godawari Power and Ispat Limited, formerly known as Ispat Godawari Ltd, is one of the group companies of HIRA Group of Industries based in Raipur, Chhattisgarh. Godawari Power and Ispat Limited operates in the long product segment of the steel industry, particularly in mild steel wire manufacturing.

Its manufacturing portfolio includes sponge iron, billets, Ferroalloys, wires rods, steel wires, among others.