Godawari Power & Ispat Limited cancelled the acquisition of remaining 66.03% stake in Jagdamba Power and Alloys Limited from Amit Agarwal, Alok Agarwal and Sagar Energy & Steel Limited.
February 18, 2019
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Godawari Power & Ispat Limited (BSE:532734) agreed to acquire remaining 66.03% stake in Jagdamba Power and Alloys Limited from Amit Agarwal, Alok Agarwal and Sagar Energy & Steel Limited for INR 1.2 billion on February 19, 2018. Godawari Power & Ispat Limited will issue 45 shares against every share 100 shares of Jagdamba Power and Alloys Limited. Godawari Power & Ispat currently holds 2.6 million shares of Jagdamba Power and Alloys. For the year ended March 31, 2017, Jagdamba Power and Alloys reported net loss of INR 1.3 million and total assets of INR 1 billion. The proposed scheme is subject to the approval of stock exchanges, shareholders of the both companies and their respective lenders/creditors and the National Company Law Tribunal and all other applicable statutory authorities. The transaction is approved unanimously by the Board of Directors of Godawari Power & Ispat Limited and Jagdamba Power and Alloys on February 19, 2018. On January 22, 2019, shareholders of Jagdamba Power and Alloys Limited voted against the deal in view of the significant fall in the market price of equity shares of Godawari Power & Ispat. Equirus Capital Private Limited acted as fairness opinion provider for Godawari Power & Ispat.
Godawari Power & Ispat Limited (BSE:532734) cancelled the acquisition of remaining 66.03% stake in Jagdamba Power and Alloys Limited from Amit Agarwal, Alok Agarwal and Sagar Energy & Steel Limited on February 19, 2019.
Godawari Power and Ispat Limited is an India-based integrated steel company. The Company operates through two segments: Steel and Electricity. Its geographic segments include Domestic Market and Export Market. The Company is engaged in iron and steel industry, power sector and mining sector. It is having an integrated steel manufacturing unit with facilities ranging from captive iron ore mining to production of iron ore pellets, sponge iron, steel billets, rolled products, wires, ferro alloys and captive power plant. The Companyâs pellet plant in Orissa is located in Keonjhor district. Its railways siding is located approximately three kilometers (km) away from plant for transport of pellet. the Company has over 50 megawatt (MW) solar thermal power plant is located in Jaisalmer district in Rajasthan. The Companyâs plant is located in Rajpur District, Chhattisgarh, India. The Companyâs subsidiaries include Godawari Energy Limited and Godawari Green Energy Limited.
Godawari Power & Ispat Limited cancelled the acquisition of remaining 66.03% stake in Jagdamba Power and Alloys Limited from Amit Agarwal, Alok Agarwal and Sagar Energy & Steel Limited.