Godawari Power announced to buy back shares worth Cr 250, insurance premium increased by 28%
The metals sector is the focus of Godawari Power & Ispat Ltd, a mid-cap company with a market valuation of $5.458 Cr. Godawari Power & Ispat Ltd. (GPIL) manufactures mild steel wire. At the board meeting on Saturday, Godawari Power & Ispat authorized a repurchase of capital shares worth $250 billion. By this action, the group will buy back up to 50,000 shares of capital with par value of $5 pcs. The redemption price has been fixed at $500 per share, representing a 28.23% premium from Friday’s closing price.
The company said in a stock exchange filing that its Board of Directors has “Approved the acquisition of up to 50,00,000 (Fifty Thousand) of fully paid-up equity shares of par value of $5 (Rs 5 only) each (“Maximum Number of Shares Redeemed”), amounting to 3.66% of the total Equity Shares in the paid-up share capital of the Company as at 31 March in 2022 (excluding 450,000 shares held by the Trust in Treasury) at a price of $500 (Rs 500 Only) per Equity Share (“Acquisition Price”), payable in cash, for a total amount not to exceed $250.00 cores (Rs two hundred and fifty cores only) (“Buyback size”), representing 8.14% and 7.67% of the total paid share capital and free reserves of the Company based on on the Company’s audited independent and consolidated financial statements as at 31 March 2022.”
“The acquisition is within the statutory limit of 10% of the total paid-up share capital and free reserves of the Company based on the Company’s most recent audited separate and consolidated financial statements as at March 31, 2022 to March 31, 2022. Board approval roadmap,” Godawari Power & Ispat’s Board of Directors said in a stock exchange filing.
Commenting on the future outlook for Godawari Power & Ispat stock, AR Ramachandran, Co-Founder & Coach Tips2trades said “Godawari Power looks bullish but faces stiff resistance at $392 on the Daily chart. Daily close above this level could lead to targets of $415-457 in the near future. Strong support will be there $355.”
On Friday, shares of Godawari Power & Ispat closed on the NSE at $389.90 each, up 4.13% from the previous closing level of $374.45. The stock recorded an average total volume of 399,030 shares compared to a 20-day average volume of 2,69,799 shares. Over the past 1 year, the stock has gained 3.01% and on a year-to-date basis it is down 1.63% through 2023. The stock hit a 52-week high of $497.80 on April 19, 2022 and the 52-week low is $223.00 on (Jun-2022). In Q3FY23, the company recorded promoter ownership of 67.50%, FII’s share of 3.01%, DII’s share of 0.75%, and the public’s share of 28, seventy three%.
Know your inner investor
Do you have nerves of steel or do you lose sleep over your investments? Determine your investment method.
catch them all Business newsletter, Market News, Hot news Events and Latest news Update on Live Mint. Download Mint News Application to get Daily Market Updates.
