Godawari Power to spend Rs 280 crore on expansion and acquisition
June 22, 2008
June 22th (Stock Watch) – Sponge iron maker Godawari Power & Ispat, plans to invest Rs 280 crore over the next two years to expand capacity and acquire a majority stake in an iron ore pelletisation plant.
The company would invest Rs 235 crore in an iron ore pelletisation, benefication, and crushing plant.
Further it would contribute another Rs 45 crore over 18 months to pick up 75% equity in Ardent Steel, which is setting up a Rs 180-crore greenfield 0.6 million tonne-per-annum iron ore pelletisation plant in Orissa.
Ardent Steel is expected to begin production by the third quarter of next fiscal.
Recently, the company has formed a separate Subsidiary Company in the name of M/s. Godawari Power Ltd with an objective to set-up a merchant power plant.
Godawari Power holds 26% stake in a consortium which has been awarded three coal blocks. The company has also been allocated two iron ore mines. These coal blocks are under various stages of development and benefits from these are expected to start from FY10 onwards.
The company reported 81.94% jump in its net profit to Rs 949.9 million for the financial year 2008 as compared to Rs 522.1 million posted during FY07. Its Board of Directors has recommended a final dividend of 25% i.e. Rs 2.50 a share for the year 2007-08.