Godawari Power shares zoom 9% to all-time high on board nod to ₹301 crore buyback

Godawari Power’s board of directors on June 15 approved the buyback of up to 21.5 lakh fully paid-up equity shares at ₹1,400 per piece. The buyback will be conducted from equity shareholders or beneficial owners of the company as of the record date, Friday, June 28, on a proportionate basis.

Shares in the buyback represent 1.64% of the company's paid-up capital. This excludes 45 lakh equity shares held by the Trust in the treasury, the company informed the stock exchanges.

Godawari Power and Ispat Ltd has also appointed a buyback committee consisting of its executive directors Abishek Agarwal and Dinesh Kumar Gandhi, independent director Samir Agarwal, CFO Sanjay Bothra and CS Yarra Chandra Rao.

The company has appointed Mark Corporate Advisors Private Limited as the manager for the buyback whereas Axis Bank Limited will serve as escrow banker. Ventura Securities Limited and Link Intime India Private Limited are the brokers and registrars for the offer.

Buyback is a process through which a company purchases its shares from shareholders, or in the open market, for various reasons. The price and time for the buyback are decided by the company.

Godawari Power and Ispat shares have gained over 169% from their 52-week low of ₹435.10, touched on June 15, 2023. The company has seen consistent growth over short periods as well. The stocks have gained over 19% over the past month and 56% over the last 6 months.

The flagship company of the Chhattisgarh-based Hira Group of Industries has two captive iron ore mines, a pellet plant and a vertically integrated steel plant in Raipur. The steel plant manufactures sponge iron, billets, MS rounds, HB wires, ferroalloys and pre-fab structures.

Godawari Power and Ispat Limited shares closed 0.57% higher at ₹1,085 apiece on the NSE on Tuesday.