Godawari Power To Acquire 51% Stake In Jammu Pigments For Rs 255 Crore
Jammu Pigments Ltd. is engaged in the business of recycling of non-ferrous metals.
Godawari Power and lspat Ltd.'s board of directors has approved acquisition of 51% stake in Jammu Pigments Ltd. for a total consideration of Rs 255 crore, on fully diluted basis.
The acquisition of the equity stake is subject to execution of definitive transaction documents and consummation of the proposed transaction upon compliance of certain conditions, according to an exchange filing on Tuesday.
Jammu Pigments Ltd. 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.
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.
Godawari Power and Ispat's board has also approved to cancel the proposed acquisition of a 74% stake in RG Pigments Pvt., which was approved on Nov. 6, 2024. RGPL is a wholly owned subsidiary of JPL and shall continue to be so.
Shares of Godawari Power and lspat Ltd. were trading 0.10% lower to Rs 186.88 apiece, compared to a 1.24% advance in the benchmark NSE Nifty 50 at 1:27 p.m.
The stock has risen 38.47% in the last 12 months and 23.54% on a year-to-date basis. Total traded volume so far in the day stood at 0.78 times its 30-day average. The relative strength index was at 48.22.
The three analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 44.3%.
