Godawari Power & Ispat Limited Buyback 2024
1. Company Background:
a) Godawari Power & Ispat Ltd. (GPIL), formerly known as Ispat Godawari Ltd (IGL), was incorporated in 1999.
b) It was established to set up an integrated steel plant with captive power generation.
c) GPIL has a dominant presence in the long product segment of the steel industry, primarily focusing on mild steel wire.
2. Integrated Manufacturing:
a) GPIL is an end-to-end manufacturer of mild steel wires.
b) The company’s manufacturing process includes the production of sponge iron, billets, ferro alloys, captive power, wire rods (through a subsidiary), steel wires, oxygen gas, fly ash bricks, and pallets.
c) GPIL has been awarded rights for iron ore and coal mining for captive consumption, enabling it to manage the entire value chain from raw material to final product
3. Product Portfolio:
a) GPIL’s product offerings include mild steel wires, sponge iron, billets, ferro alloys, wire rods, oxygen gas, fly ash bricks, and pallets.
b) The company has a comprehensive product range catering to various segments of the steel industry.
4. Growth and Expansion:
a) The company has shown remarkable growth backed by higher production volumes and better price realisations.
b) 2007-08 marked a significant year of performance improvement for GPIL.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jun 28 2024 |
| Buyback Opening Date: | Jul 04 2024 |
| Buyback Closing Date: | Jul 10 2024 |
| Buyback Offer Amount: | ₹ 301 Cr. |
| Date of Board Meeting approving the proposal: | Jun 15 2024 |
| Date of Public Announcement: | Jun 15 2024 |
| Buyback Offer Size: | 1.64% |
| Buyback Number of Shares: | 21,50,000 |
| FV: | 5 |
| Buyback Price: | ₹ 1400 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In cr) | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales + | 3,270 | 3,949 | 5,397 | 5,745 | 5,455 |
| Expenses + | 2,646 | 2,812 | 3,529 | 4,612 | 4,127 |
| Operating Profit | 624 | 1,137 | 1,868 | 1,134 | 1,328 |
| OPM % | 19% | 29% | 35% | 20% | 24% |
| Other Income + | -3 | 48 | 175 | 93 | 129 |
| Interest | 212 | 115 | 20 | 20 | 60 |
| Depreciation | 137 | 109 | 105 | 124 | 141 |
| Profit before tax | 273 | 962 | 1,918 | 1,083 | 1,256 |
| Tax % | 35% | 32% | 24% | 27% | 26% |
| Net Profit + | 177 | 655 | 1,467 | 793 | 936 |
| EPS in Rs | 11.83 | 45.28 | 104.06 | 56.29 | 68.89 |
| Dividend Payout % | 0% | 10% | 12% | 7% | 0% |
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 | 154154 | 154154 | 154154 | 154154 |
| No. of Shares Buyback | 47 | 71 | 107 | 143 |
| Buyback Profit | 15134 | 22862 | 34454 | 46046 |
| Profit% | 9.82% | 14.83% | 22.35% | 29.87% |
35 Comments
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For me 28 shares accepted out of 116 so AR came to be 24.14% for me
AR is around 24% declared
22 accepted out of 90
This time single strategy didn’t work. Only 1/4 got accepted
I HAVE 78 SHARE HELD ON RECORD DATE I SOLD 60 SHARE AFTER RECORD DATE AND TENDER 18 SHARE FOR BUYBACK THEY ACCEPT 8 SHARE SO HOW AR RATIO IS 24 PLEASE HELP ME
Excellent buyback, apart from the AR this beauty hit a life time high of 1223+in NSE and closed at 1152+today.What more prominence is required!
Any news about AR?
25% AR RATIO HO GAYA.AAJ MSG BHI AANE LAGE
Buyback Subscription going beyond 400% . i think AR will be same as ER here, lets see.
Where can i see live subscription of GPIL buyback?
NSE official website
Ok, thanks VSK, got it
16 out of 1065 for me.
Do you have to surrender all your shares or just the 16 stocks ?
No, it is not mandatory to tender all the shares, but, the more shares you tender, the more company is likely to buyback from you..
KDDL BOARD MEETING on 9th July for buyback consideration.
Cmp 3100
Thanks for the heads-up 👍
KDDL BUYBACK SIZE MAY BE NEAR 70CR
3700
ER=8 out of 100
It is 14/160 in my case.
I think it is good time to buy stock for Buyback as the margin is around 30% which you do not see often in buyback.
Last time buyback size of 250 Cr. and price was 500/. AR was 32.5℅. This time 301Cr. at 1400/. So in my opinion AR would be around 5-6℅.I am not going to participate
Your thinking would tend AR to 50% if other too
This is like declarating that you take it or leave it, I’m in a hurry type of a buyback .
I have got the buyback email. 5 shares out of 50 ! I should have sold this before when I had the chance!
Godawari Power and Ispat Ltd
Board Meeting – 15-06-2024
Route – Tender offer
Record date – 28-06-2024
Buyback Size – INR 301 Cr
Buyback Price – INR 1400
CMP- INR 1079
Proposed buyback Share – 21,50,000
Premium form CMP : 29.75%
Mkt Cap : 14,666 Cr
Promoter Participation : Yes
Buyback representing 7% of total paid up capital and free reserve
buyback at Rs 1400 per share record date 28th june.
The stock price have increased more than 10% after announcement and also this year there has been no revenue growth but stock price have gone up exponentially. Looks a risk to me.
last year buyback price was 500 now it is ranging in 1000 can it come out with price of 1200. any idea anybody.
Too early to speculate. We will have to check this on weekend if they approve the buyback but best to accumulate shares for now.
i am holding in 3 account 1000, 300 and 200 i am long term investor please guide if any suggestions please to get best benefit.
As far as I have experienced,in buyback the existing investor ( retail investor) surely gets benefitted. The strategy is buy back the accepted shares at lesser rate compared to buyback price . Thus cost of acquisition comes down drastically . 9873713178
Super.
42 accepted out of 173 i.e 24.20% acceptance ratio 😊