Godawari Power Acquires 2% Additional Stake In Jammu Pigments For Rs 10 Crore

Godawari Power & Ispat Ltd. has completed the acquisition of 51% stake in Jammu Pigments Ltd. on a fully diluted basis.

According to the company's exchange filing on Wednesday, it has completed the acquisition of an additional 2% stake, or 3,36,069 equity shares, of Jammu Pigments for a total consideration of Rs 9.98 crore.

Godawari Power acquired the shares of Rs 10 each at a price of Rs 297 apiece from Jammu Pigments promoter Ramesh Kumar Agarwal.

This is the second tranche of Godawari Power's equity acquisition in Jammu Pigments. This was done through a secondary purchase from the promoters. As a result, now, the company has 51% stake in the target company on a fully diluted basis.

In the first tranche, on Nov. 20, 2024, it had acquired a 49% stake in Jammu Pigments. This was done through a primary infusion against the issuance of compulsory convertible preference shares, and through a secondary purchase of shares from existing promoters of Jammu Pigments.

The move will enable the steel manufacturer to diversify its business activities into the recycling of non-ferrous metals, which is an emerging business and provides growth opportunities, it added.

Jammu Pigments is engaged in the business of recycling non-ferrous metals. Its operations include recycling of lead-acid batteries and other secondary lead waste, the filing said.

The company and its subsidiaries have manufacturing units in the Kathua district in Jammu & Kashmir, as well as in Kota in Rajasthan. They process complex mixtures of hazardous industrial waste of non-ferrous metals to recover lead, tin, zinc, copper, and cadmium, among others.

The filing added that Jammu Pigments' advanced technical expertise enables efficient extraction of trace metals from waste materials, ensuring highly cost-effective operations.

Godawari Power added that it doesn't require any governmental or regulatory approvals for the acquisition.

The transaction is expected to be completed in one or more tranches on or before March 31, 2025, the filing said.

Jammu Pigments' consolidated revenue stood at Rs 825.70 crore, Rs 1,013.38 crore, and Rs 1,173.78 crore for the financial years 2021-22, 2022-23, and 2023-24, respectively.

Shares of Godawari Power closed 5.10% higher at Rs 213.15 apiece on the BSE, compared to a 0.47% advance in the benchmark Sensex.