Godawari Power & Ispat Limited Buyback 2023
Godawari Power & Ispat Ltd. (GPIL) a public Ltd. Co., formally Ispat Godawari Ltd (IGL), a pioneer constituent belonging to HIRA Group of Industries, Raipur, C.G. was incorporated in 1999 to set up an integrated steel plant with captive power generation under the guidance of visionary leadership of Mr. B. L. Agrawal, Managing Director, a techno commercial visionary having proven wide experience in commissioning & running of Cement Plant, Sponge Iron Plant etc., backed by a dedicated team of professionally qualified personnel under the stewardship of Board of Directors having expertise in Engineering finance administration GPIL is listed with the National Stock Exchange and Bombay Stock Exchange.
GPIL is a flagship Company of Raipur-based Hira Group of Industries having dominant presence in the long product segment of the Steel industry, mainly into mild steel wire. Today, GPIL is an end-to-end manufacturer of mild steel wires. In the process, the company manufactures sponge iron, billets, Ferro alloys, captive power, wires rods (through subsidiary company), steel wires, Oxygen gas, fly ash brick and last but not the least iron ore pellets. GPIL is also awarded rights for Iron Ore Mining for captive consumption, as a result of which, the company has managed to traverse the entire value chain (raw material to final product) in steel wires and has now become a fully integrated steel manufacturer.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Mar 31 2023 |
| Buyback Opening Date: | Apr 10 2023 |
| Buyback Closing Date: | Apr 17 2023 |
| Buyback Offer Amount: | ₹ 250 Cr |
| Date of Board Meeting approving the proposal: | Mar 18 2023 |
| Date of Public Announcement: | Mar 18 2023 |
| Buyback Offer Size: | 3.66% |
| Buyback Number of Shares: | 50,00,000 |
| Price Type: | Tender Offer |
| FV: | 5 |
| Buyback Price: | ₹ 500 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
| Sales + | 2,506 | 3,294 | 3,270 | 3,949 | 5,397 |
| Expenses + | 1,909 | 2,505 | 2,646 | 2,812 | 3,529 |
| Operating Profit | 597 | 790 | 624 | 1,137 | 1,868 |
| OPM % | 24% | 24% | 19% | 29% | 35% |
| Other Income + | 6 | 9 | -3 | 48 | 175 |
| Interest | 263 | 253 | 212 | 115 | 20 |
| Depreciation | 132 | 133 | 137 | 109 | 105 |
| Profit before tax | 208 | 414 | 273 | 962 | 1,918 |
| Tax % | -3% | 37% | 35% | 32% | 24% |
| Net Profit | 215 | 261 | 177 | 655 | 1,467 |
| EPS in Rs | 14.73 | 17.88 | 11.83 | 45.28 | 104.06 |
| Dividend Payout % | 0% | 0% | 0% | 10% | 12% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,54,800 | 1,54,800 | 1,54,800 | 1,54,800 |
| No. of Shares Buyback | 132 | 200 | 300 | 400 |
| Buyback Profit | 14,916 | 22,600 | 33,900 | 45,200 |
| Profit % | 9.63% | 14.59% | 21.89% | 29.19% |
53 Comments
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GPIL has given great profit, seeing the market price and Rs 500/- as buyback price.
Dear experts, Kindly suggest about Wipro. Shoule we enter at 372 or wait for 365 or lower after results?
(I am not an expert but this is my personal view so please invest on your own risk)
Hello Sumit,
I think it is great time to enter trade right now. Please find my analysis below: –
Offer Type – Tender Offer via Special resolution (which take around 30-60 days time period to complete the buy back)
Buyback Price – Around 15-20% premium over the open/close price as on date of board meeting. I assume price will remain in strick close zone till board meeting.
Share offered in Buyback – Around 5% of Share Capital
ER for Small Shareholders – Around 10%
AR for Small Shareholders – Around 40%-50% (depending on the share price during the tender offer period)
All the above are based on past couple of buyback done by Wipro
I have bought 50% today and will buy remaining 50% (if all condition remain favorable as mentioned above) after the detailed annoucement of the board meeting.
Also, I bought 25 May Call Option of Wipro for SP of Rs 420 to gain some unexpected price movement. I am also trying to buy put option of Wipro of Rs 330 but it is not matched with my target price yet.
HI Rohit,
A bit confused. Hopefully you mean Wipro..
Unfortunately, I am not sure if it would be Tender or Open market.
Yes, it is for Wipro. I replied on the GPIL page as you asked in the comment for Wipro.
Generally, companies use to follow the previous buyback pattern so I think it should be Tender offer.
165 accepted out of 450
AR of 36.5%
Thanks.
Anything above 30% is good in current market scenario !
how to checka nd where to check
51 out of 160 so roughly 32% IA acceptance ratio
Not good not bad it’s OK
Again sumit ji you are right
It is 71/194 in my case. 36.5 %AR.
Yes 51 out of 141
Anyone aware of the individual subscription in this Buyback ? Now NSE shows only total which is 7.27.
Total shares tendered by individuals 26398016 which is very high so I think AR will be less for retailer compare to general investors.
Can you share your source? As per my calcaultion the AR should be somewhere around 35%.
Trilochan ji, Individual includes Promotors and HNI or other having more than 2 Lac. So in this case, nothing can be drawn from individual subscription. Considering 10% ER, expecting 25-30% acceptance.
Sumit ji individuals shares>2 lakh is only 6539411 according to March 2023 data. If promoters are also included in individual category then AR for retailers will be on higher side.
However Sir I personally like your analysis.
Trilochan ji, IT is confusing but there are different categories for different applications.
Like for allotment / buying back of share there are only 2 categories for the share holders ,
1) Small – For which the value of share hold on the record date should be less than 2L
2) all other – General.
While for Buyback subscription (Not for allotment) for persons applied, there are different categories like Individual, DII etc, so some one can be General and shown in individual.
Hope it is useful.
31.8 % finalized AR
GPIL has appreciated 8% after my purchase. Sold 200/500 . Price appreciation wonderful… AR would be increasing with increase in market price … Lets see the subscription
Hi all, I have sold a few GPIL stocks on the record date, which are eligible for buyback. Can I buy the stocks during the tender offer dates and submit them for buyback??
Yes… You can…
Thanks.
Any buy back coming up? Please share.
Wonderful management of this buyback. ER – 10.3% Expecting AR to be > 35%.
Minimum time taken and all action done swiftly.
HGS need to learn…
Same with Ajanta Pharma sir.
Everything done very fast.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/6c9f9e20-84a8-4084-86ea-16fdc983348f.pdf
What is ER?
ER is 10% for retail.
Did you got mail?
New Announcement on Buyback Today:
1. Record Date = Friday March 31, 2023
2. Filing of Letter of Offer = Tuesday April 04, 2023
3. Buyback Opening Date = Monday April 10, 2023
4 Buyback Closing Date = Monday April 17, 2023
Mail to Kuch aaya nhi?? Kisi ka aayaa hai kya?
I got the mail now.
Aaj aaya hai
Expect AR of 70 percent or more in view of the lukewarm response seen during the days prior to the ex.dates
A large fall seen in the share, Why not much clear ?? But the Buyback record date is not very far… This share can definitely surprise with higher AR of 30-40%…
Bought 300@ 356.75 Would add further at 348…
Could you pls explain why do you expect AR of 35-40%?
Hi Mayank, thre is no scientific reason or mathematical formula for 35-40% AR , but considering the fall in this share and overall market, it is not expected that specific small shareholders would have added this share for buyback. Also the General buzz is not much in the market. As per previous experience, with 8-9% ER, such shares have AR 4 to 5 times ER and some times even much higher.
It is pure guestimate with previous experience. Please take your decision as per your study.
bought 400 share on 29-03-23 eligible for buyback
https://www.livemint.com/market/stock-market-news/godawari-power-announces-share-buyback-of-rs-250-cr-premium-is-up-28-11679240904496.html
Jagran buyback was not published? seems 100% were accepted
https://www.bseindia.com/xml-data/corpfiling/AttachHis/ae5566e6-7cb5-4c9f-b3ab-83810ee2aeba.pdf
from the quantity , seems high buyback %ge
Buyback announced
Price : 500rs
Size : 50,00,000 shares
Amt : 250cr
Tender route.
Record date : 31st March.
What is Expected Entitlement Ratio on the basis of friday small investors number?
Brother As Discloser submitted “share holding pattern” as on DEC 2022 by company
Total Small share holder are 85673
3 percent around
Approximately ER 5-8%.
How did you calculated 5-8%?
As per share holding pattern of retailers. &
And previous experience
GPIL
Buyback Price : 500/- Per Share
Buyback Size ₹ : 250 Crore
Buyback Size in Shares : 50,00,000 Shares
Record Date : Friday, 31 March
Godawari Power and Ispat Ltd
Tender route buyback
At 500 per share
50 lakh shares
250 cr
31 march Record dt
Just announced
Godawari Buyback Intimation on 18.03.2023
https://www.bseindia.com/xml-data/corpfiling/AttachLive/9ccd2cdb-ba0d-4e33-835b-1049ea7e1f5b.pdf
Has this company done a buyback in history? Was it tender or open market?
Tender or open will be decided in meeting of 18.03.23
Price will be also finalized on 18th March. Wait for 24 hrs
Thank you for the reply sir.
Actually, I wanted to know if there is any history of this company doing buybacks.
As per share holding pattern looks like it comes Tender route buyback. Lets see today