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Shares of Godawari Power & Ispat surged 5% to 1,270 per share on the BSE in Tuesday's session after the company announced that its board of directors in a meeting held today have approved the proposal of sub-division of shares (stock split) in the ratio of 1:2 to improve the liquidity of the company's share on the stock market and also to facilitate small investors to deal in its shares. 

“The board approved the proposal for sub-division of equity share of face value of 10 each of the company into 2 equity shares of Rs.5 each, subject to approval of the shareholders of the company," Godawari Power said in an exchange filing.

The company's board has also decided to issue bonus shares in the ratio of 1:1 by capitalizing the free reserves after the proposal for split of the shares is approved by the shareholders of the company. “One equity share of 5 each as bonus for everyone equity share of 5 each fully paid up (Post Sub-division) of the company," it added.

In order to accommodate the proposed issue of bonus Shares, the company has decided to increase the authorised equity share capital from existing 49.8 crore to 70.8 crore by creation of additional 2.1 crore equity shares of 10 each (4.2 crore equity shares of 5 each post sub-division) subject to approval of the shareholders of the company.

Meanwhile, the company has decided to withdraw the scheme of arrangement for demerger of power business undertaking of Jagdamba Power & Alloys Limited & merge into the company.

"The Board was expecting to complete the process of demerger in a period of 6 to 8 months but because of the ongoing pandemic there was a delay and even the first motion of application has taken over 19 months and is still not complete,'' Godawari Power said.

 

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