Home / Markets / Stock Markets /  Godawari Power announces share buyback of 250 Cr, premium is up 28%

The metal sector is the focus of Godawari Power & Ispat Ltd, a mid-cap company with a market valuation of 5,458 Cr. The company Godawari Power & Ispat Ltd. (GPIL) produces mild steel wires. At its board meeting on Saturday, Godawari Power & Ispat authorised the buyback of equity shares worth 250 crore. By this action, the corporation would buyback up to 50 lakh equity shares with a face value of 5 apiece. The price for the buyback has been fixed at 500 per share, which represents a premium of 28.23% over Friday's closing price.

The company said in a stock exchange filing that its Board of Directors have “Approved the buyback up to 50,00,000 (Fifty Lakhs) fully paid-up equity shares having a face value of 5 (Rupees Five Only) each ("Maximum Buyback Shares"), representing up to 3.66% of the total number of Equity Shares in the paid-up equity share capital of the Company as on March 31, 2022 (excluding 45,00,000 shares held by Trust in Treasury) at a price of 500 (Rupees Five Hundred only) per Equity Share ("Buyback Price"), payable in cash, for an aggregate amount not exceeding 250.00 Crores (Rupees Two Hundred Fifty Crores only) (``Buyback Size"), representing 8.14% and 7.67% of the aggregate of the total paid up equity share capital and free reserves of the Company based on the audited standalone and consolidated financial statements of the Company as on March 31, 2022."

“The Buyback is within the statutory limit of 10% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022 through the board approval route," said the Board of Directors of Godawari Power & Ispat in a stock exchange filing.

Commenting on the future outlook of the shares of Godawari Power & Ispat, A R Ramachandran, Co-founder & Trainer Tips2trades said “Godawari Power looks bullish but faces strong resistance at 392 on the Daily charts. A daily close above this level could lead to targets of 415-457 in the near term. Strong support will be at 355."

On Friday, the shares of Godawari Power & Ispat closed on the NSE at 389.90 apiece level, up by 4.13% from the previous close of 374.45. The stock recorded a total volume average of 3,99,030 shares compared to the 20-Day volume average of 2,69,799 shares. In the last 1 year, the stock has gained 3.01% and on a YTD basis, it has fallen 1.63% so far in 2023. The stock touched a 52-week-high of 497.80 on (19-Apr-2022) and a 52-week-low of 223.00 on (20-Jun-2022). During Q3FY23 the company recorded a promoter shareholding of 67.50%, FIIs stake of 3.01%, DIIs stake of 0.75% and a public stake of 28.73%.

Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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