Godawari Power and Ispat Limited to set up integrated steel plant in Chhattisgarh

The Board of Directors of Godawari Power and Ispat Limited ("GPIL") at its meeting held today (i.e. 27th July, 2021), has approved in principle, the proposal for setting up of Integrated Steel Plant with a capacity of 1.5 to 2 Million Tons of Flat Products in the State of Chhattisgarh under PLI Scheme (Production-Linked incentive Scheme). The estimated capital outlay shall be around Rs.3000 to 4000 Crores. The Company has initiated the process for land acquisition, obtaining of Environmental clearances, etc. for setting up of the said project and the final cost of project shall be finalized in due course.

The board also approved investment up-to Rs.70.20 Crores for acquisition of additional equity shares proposed to be offered by Hira Ferro Alloys Limited (HFAL) on preferential basis to GPIL, subject to approval of shareholders of HFAL. HFAL is an Associate Company of GPIL, in which GPIL is already holding 48.45% of the equity shares. Consequent upon aforesaid further investment, HFAL will become subsidiary of Company with 56.45% of enhanced share capital of HFAL. HFAL, engaged in the business of manufacturing of Ferro Alloys is setting up of a 70 MW Solar Power Plant in the Rajnandgaon, Chhattisgarh for its captive use with a project cost envisaged at Rs.230 Crores. The Project will be financed partially through equity and partially through bank finance.

Shares of GODAWARI POWER & ISPAT LTD. was last trading in BSE at Rs. 1690 as compared to the previous close of Rs. 1668.55. The total number of shares traded during the day was 5494 in over 355 trades.

The stock hit an intraday high of Rs. 1700 and intraday low of 1640. The net turnover during the day was Rs. 9249783.

Source : Equity Bulls

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