Godawari Power announces share buyback of ₹250 Cr, premium is up 28%

The company said in a stock exchange filing that its Board of Directors have “Approved the buyback up to 50,00,000 (Fifty Lakhs) fully paid-up equity shares having a face value of ₹5 (Rupees Five Only) each (“Maximum Buyback Shares”), representing up to 3.66% of the total number of Equity Shares in the paid-up equity share capital of the Company as on March 31, 2022 (excluding 45,00,000 shares held by Trust in Treasury) at a price of ₹500 (Rupees Five Hundred only) per Equity Share (“Buyback Price”), payable in cash, for an aggregate amount not exceeding ₹250.00 Crores (Rupees Two Hundred Fifty Crores only) (“Buyback Size”), representing 8.14% and 7.67% of the aggregate of the total paid up equity share capital and free reserves of the Company based on the audited standalone and consolidated financial statements of the Company as on March 31, 2022.”

“The Buyback is within the statutory limit of 10% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022 through the board approval route,” said the Board of Directors of Godawari Power & Ispat in a stock exchange filing.

Commenting on the future outlook of the shares of Godawari Power & Ispat, A R Ramachandran, Co-founder & Trainer Tips2trades said “Godawari Power looks bullish but faces strong resistance at ₹392 on the Daily charts. A daily close above this level could lead to targets of ₹415-457 in the near term. Strong support will be at ₹355.”

On Friday, the shares of Godawari Power & Ispat closed on the NSE at ₹389.90 apiece level, up by 4.13% from the previous close of ₹374.45. The stock recorded a total volume average of 3,99,030 shares compared to the 20-Day volume average of 2,69,799 shares. In the last 1 year, the stock has gained 3.01% and on a YTD basis, it has fallen 1.63% so far in 2023. The stock touched a 52-week-high of ₹497.80 on (19-Apr-2022) and a 52-week-low of ₹223.00 on (20-Jun-2022). During Q3FY23 the company recorded a promoter shareholding of 67.50%, FIIs stake of 3.01%, DIIs stake of 0.75% and a public stake of 28.73%.