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 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 [To be Updated] by selling your shares through your broker on NSE or BSE.
3. Then on [To Be Updated], 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%

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