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:

The proposal to buyback not exceeding 50,00,000 (Fifty Lakh) equity shares of face value of Rs. 5 of the Company (representing 3.66% of the total number of equity shares in the paid-up share capital of the Company) at a price of 500 (Rupees  Five Hundred Only) per equity share payable in cash for an aggregate consideration not exceeding 250 Cr (Rupees Two Hundred Fifty Crore Only).

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?

1. Firstly, to be eligible for the buyback the investor should have shares of  Godawari Power & Ispat Limited in  Demat or physical form as on the record date [31-03-2023]
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [10-04-2023] by selling your shares through your broker on NSE or BSE.
3. Then on [24-04-2023], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 400 Shares at CPM of Rs. 387 (2,00,000/500)
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%


    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.

    51 out of 160 so roughly 32% IA acceptance ratio
    Not good not bad it’s OK
    Again sumit ji you are right

    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.

    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??

    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…

    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

    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…

        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.

    Buyback announced

    Price : 500rs
    Size : 50,00,000 shares
    Amt : 250cr
    Tender route.
    Record date : 31st March.


    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

      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

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