India's Godawari Power and Ispat jumps on stock split, bonus issue

Godawari Power And Ispat

14/09/2021 07:41

** Shares of iron ore pellet and sponge iron maker  GDPI.NS 
rise as much as 5% to 1,270.50 rupees, hitting an upper circuit
    ** GDPI shares see their best intraday gain since June 14
    ** Co says its board approved a stock split in the ratio of
1:2 and also declared a bonus issue in ratio 1:1  urn:newsml:reuters.com:*:nFWN2QG00D
    ** Adds that bonus issue was part of plan to improve
liquidity and reward long-term share holders
    ** Co also says board decided to withdraw the scheme of
arrangement for demerger of power business undertaking of
Jagdamba Power & Alloys Ltd and merger with co
    ** GDPI says the scheme, which was approved in Dec 2019,
could not be completed due to the pandemic
    ** As the steel sector witnessed robust growth, the
valuations were not as commercially viable as thought during the
time of approval - GDPI
    ** Co also withdrew a proposal for disinvestment of stake in
Godawari Green Energy Ltd (GGEL) and approved proposal for
purchase of 5.6 mln equity shares of GGEL from external
investors at 102 rupees per share
    ** About 381,708 shares change hands, 4.1x 30-day avg of
92,507
    ** GDPI shares up 154.90% so far this year, as of last close

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (Within U.S.
1-646-223-8780, Outside U.S. +91 8067496031); Reuters Messaging:
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