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Godawari Power & Ispat Limited’s ₹301 crore buyback will purchase 21.5 lakh shares ₹1,400 each, a 30% premium. The company’s Q4FY24 net profit rose 29.4% to ₹219.5 crore, revenue increased 16.2% to ₹1,529.8 crore.
The Board of Godawari Power and Ispat has approved a share buyback plan valued at ₹301 crore. The plan involves repurchasing approximately 21.5 lakh fully paid-up equity shares at a price of ₹1,400 per share, a 30% premium over the current market price of ₹1,078 per share.
Explore:Godawari Pow & Isp Ltd Share Price
The buyback will be executed on a proportionate basis, targeting equity shareholders and beneficial owners as of June 28, 2024.
The company's exchange filing states that this buyback represents up to 1.64% of the company’s total paid-up equity share capital as of March 31, 2024, excluding the 45 lakh equity shares held by the Trust in Treasury.
In Q4FY24, Godawari Power & Ispat Ltd reported a significant 29.4% year-on-year increase in net profit, amounting to ₹219.5 crore compared to ₹169.6 crore in the same period the previous year.
Revenue from operations saw a 16.2% rise, reaching ₹1,529.8 crore from ₹1,316.6 crore year-over-year. The company’s EBITDA increased by 19.3%, totalling ₹328.9 crore in Q4FY24, up from ₹275.8 crore in Q4FY23.
The board has approved the buyback through the tender offer route. The buyback will use ₹250 crore, representing 7% of the company's paid-up equity and 6.66% of its free reserves as of March 31, 2024.
This strategic move by Godawari Power & Ispat not only reflects its robust financial health but also its commitment to enhancing shareholder value through direct capital return.
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