Godawari Power and Ispat Limited has completed the allotment of 13.61 lakh equity shares following the conversion of warrants by a key investor. According to the company's exchange filing, the Stakeholders' Relationship Committee approved the allotment of shares at Re 1 each with a premium of ₹244 per share. The conversion was executed by Meridien Realtech Private Limited, which exercised its option to convert an equal number of warrants into equity shares upon payment of the remaining 75% of the issue price. The company received ₹183.75 per warrant on conversion, aggregating to approximately ₹25 crore.
Recent legal proceedings have highlighted the company's involvement in arbitration matters. According to LiveLawBiz, the Bombay High Court dismissed an appeal filed by Shinde & Sons in Commercial Arbitration Appeal No. 1 of 2019, upholding the order of the District Judge at Beed setting aside the arbitral award under Section 34 of the Act. The court emphasized that even in ex-parte proceedings, an arbitrator must ensure a fair, evidence-based and unbiased process under Section 25 of the Arbitration and Conciliation Act, 1996. Additionally, the Calcutta High Court clarified that earning profits does not, by itself, defeat a claim for damages arising from breach of contract, upholding an arbitral award in favour of Great Eastern Energy Corporation Limited.
The current conversion follows the company's earlier allotment of over 2.04 crore convertible warrants at an issue price of ₹245 per warrant on a preferential basis to promoters and non-promoter investors. As reported by the company, 25% of the issue price had already been received at the time of allotment. Out of the seven warrant holders, Meridien Realtech Private Limited has become the first to exercise conversion options, demonstrating confidence in the company's prospects.
The company has been actively expanding its operations through significant capital investments. According to recent announcements, Godawari Power and Ispat increased its investment in wholly owned subsidiary Godawari New Energy Private Limited (GNEPL) through a fresh equity infusion of ₹50 crore. The funds will be utilized by GNEPL to meet proposed capex and working capital requirements for setting up a battery energy storage plant. Additionally, the board approved a proposal to establish an integrated steel plant with 1 million tonnes per annum capacity in Sarora village, Raipur district, Chhattisgarh, with an estimated investment of ₹7,000 crore.
The company's shares have demonstrated remarkable performance with a 680% gain over the last five years, rising from ₹11.60 to ₹266. As reported by Live Mint, the stock has delivered positive returns over the last six years, with 2023 being the biggest annual gain of 133%, followed by 103% in 2022. From its March lows of ₹237.70, the shares have recovered 26% and reached a fresh record high of ₹310 last week. The recovery rally has contributed to a 13% surge in 2026 so far, with cumulative gains of 2,193% over the six-year period.
