Godawari Power & Ispat announced that its board of directors had approved the acquisition of a 51% stake in Jammu Pigments for a total consideration of Rs 255 crore on a fully diluted basis.
The acquisition was subject to the execution of definitive transaction documents and the fulfillment of certain conditions before the proposed transaction could be finalized.Jammu Pigments is engaged in the business of recycling of non-ferrous metals, with operations covering recycling of lead acid batteries and other secondary lead waste. The company and its subsidiaries are also equipped to process complex mixtures of industrial waste of non-ferrous metals.
Objects of acquisition are to diversify company's business activities into recycling of non-ferrous metals, which is an emerging business and provides growth opportunities. The transaction is expected to be completed in one or more tranches on or before 31 March 2025.
JPL's advanced technical expertise enables the efficient extraction of trace metals from waste materials, ensuring highly cost-effective operations. JPL and its subsidiaries have manufacturing units located in Kathua district in Jammu and Kashmir and Kota in Rajasthan.
The companys board has also approved to cancel the proposed acquisition of a 74% stake in RG Pigments, which was approved on 6 November 2024. RGPL is a wholly owned subsidiary of JPL and shall continue to be 100% subsidiary of JPL.
Godawari Power & Ispat is the flagship arm of Chhattisgarh-based Hira Group of Industries. The company has two captive iron ore mines, pellet plant and a vertically integrated steel plant in Raipur. The steel plant manufactures sponge iron, billets, MS rounds, HB wires, ferro alloys and pre-fab structures.
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The companys consolidated net profit declined 38.05% to Rs 159.12 crore on 1.81% decrease in revenue to Rs 1,267.57 crore in Q2 FY25 over Q2 FY24.
Shares of Godawari Power & Ispat rose 0.43% to Rs 187.95 on the BSE.
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