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Godawari Power & Ispat Limited withdraws scheme of arrangement with Jagdamba Power & Alloys Ltd
Posted On : 2021-09-14 11:50:44( TIMEZONE : IST )
The Board of Directors of Godawari Power & Ispat Limited ("the Company") in their meeting held today i.e., 14th September 2021 have approved the withdrawal of Scheme of Arrangement with Jagdamba Power & Alloys Ltd. It is decided to withdraw the Scheme of Arrangement for demerger of Power Business Undertaking of Jagdamba Power & Alloys Limited ("Demerged Company") and merge into Godawari Power & Ispat Limited ("Resulting Company") (hereinafter referred to as 'Scheme') approved by the Board of Directors in their meeting held on 24th December, 2019.
The Scheme was approved in the meeting of the Board of Directors of the Company held on 24th December, 2019 with appointed date as 1st April, 2019 and the swap ratio was determined on the basis of fair values as on that date. 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.
During this period of 20 months steel sector has witnessed a robust growth and market dynamics have been changed drastically. Hence, the valuations are incomparable and are not be commercially viable as envisaged at the time of approval of Scheme by the Board. It has, therefore, been decided to withdraw the Scheme in terms of the clause 31 of the said Scheme.
However, the existing arrangement of supply of power from JPAL will continue, till an alternate agreement is finalized for acquisition of Power business of JPAL comprising of asset & liabilities of 25 MW power plant.
Shares of GODAWARI POWER AND ISPAT LTD. was last trading in BSE at Rs. 1209.45 as compared to the previous close of Rs. 1151.9. The total number of shares traded during the day was 964 in over 40 trades.
The stock hit an intraday high of Rs. 1209.45 and intraday low of 1209.45. The net turnover during the day was Rs. 1165909.
