Shares of Godawari Power & Ispat hit a new high of Rs 1,489 after rallying 18 per cent on the BSE in intra-day trade on Monday, after the company’s shareholders approved the proposal for divestment of its shareholding in Godawari Green Energy (GGEL), a material subsidiary of the company. The stock was trading higher for the seventh straight day and has zoomed 51 per cent in the past three trading days.
GGEL is a Special Purpose Vehicle (SPV) promoted by GPIL with an equity stake of 77.82 per cent on fully diluted basis. The company was formed with an objective to set up solar power project under Jawahar Nehru National Solar Mission (JNNSM) of Government of India Phase -I launched by Ministry of New and Renewable Energy (MNRE) through a designated nodal agency NTPC Vidyut Vyapar Nigam (NVVN) a Subsidiary of NTPC to tackle the growing energy requirement of the Country in an ecologically sustainable manner. GGEL has set up a 1x50 MW Solar Thermal Power Plant in Village- Nokh, Tehsil- Pokhran, Dist- Jaisalmer, Rajasthan and has been operating since June 2013.
In the past two weeks, the market price of Godawari Power & Ispat, engaged in steel products business, has soared 64 per cent after the company posted a multifold jump in consolidated net profit at Rs 304 crore for the quarter ended March 2021 (Q4FY21), mainly on the back of higher revenues. It had a profit of Rs 34.22 crore in the year-ago quarter. The company’s total income rose 60 per cent year on year to Rs 1,264 crore in the quarter from Rs 788 crore in the same period a year ago.
Meanwhile, the company said its board has also approved a proposal to set up of a captive Solar PV power plant of 250 MW capacity in Raigarh District of Chhattisgarh with a cost envisaged at Rs 750 crore. The project shall be funded mainly out of internal accruals. The power generated in this project shall be captively consumed in the company's existing plant situated at Silatra Industrial Area, Raipur, Chhattisgarh, it said.
From the perspective of making a strategic investment and acquisition of distressed assets available in the steel and metal sector, the board also given its approval for utilization of its surplus funds upto Rs 200 crore to invest/grant loan/inter-corporate deposit or in any other form to asset reconstruction companies, distressed asset funds and/or other bodies corporate.
Since March 12, 2021, the stock has zoomed 165 per cent after the company got approval from the Chhattisgarh Environment Conservation Board, Raipur for ‘consent to operate' the enhanced capacity of iron ore pellet plant and consent to set up manufacturing facilities in other divisions.
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