Godawari Power & Ispat Limited has successfully terminated its inter-corporate loan facility with Deccan Gold Mines Limited following complete repayment of the ₹120.00 crores loan amount. The steel company executed the termination agreement on January 6, 2026, and informed stock exchanges about the completion of this significant financial transaction.

Loan Termination Details

The termination follows the full repayment of all outstanding amounts by Deccan Gold Mines Limited. The company disclosed that the borrower has repaid the entire principal amount of ₹120.00 crores along with the applicable interest components.

Background and Timeline

The inter-corporate loan arrangement was originally established through facility agreements that were announced on multiple occasions. The company had previously informed exchanges about these lending arrangements through announcements dated February 25, July 3, and August 30.

The loan facility represented a significant financial commitment, with the total lending amount aggregating to ₹120.00 crores. The successful recovery of this amount demonstrates effective credit management and strengthens the company's liquidity position.

Regulatory Compliance

Godawari Power & Ispat Limited has fulfilled all disclosure requirements under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations. The company provided detailed information as mandated under Schedule III- Para B of Part A of the Listing Regulations and SEBI Master Circular.

Financial Impact

The successful conclusion of this lending arrangement positively impacts Godawari Power & Ispat Limited's financial position. The recovery of ₹120.00 crores along with interest income enhances the company's cash flows and demonstrates successful deployment of surplus funds through inter-corporate lending activities.

The termination agreement completion involves ongoing procedural formalities, which the company is addressing in due course. This development reflects prudent financial management and successful credit recovery, contributing to the company's overall financial stability and operational flexibility.

Godawari Power & Ispat Limited has announced its decision to withdraw from participating in the Deccan Gold Mines rights issue, citing oversubscription as the key factor behind this strategic move. The steel sector company communicated this development to stakeholders, indicating a shift in its investment approach regarding this particular opportunity.

Strategic Investment Decision

The company's decision to opt out of the Deccan Gold Mines rights issue represents a calculated business move based on market conditions. Oversubscription in rights issues typically indicates strong investor interest, which can affect the terms and potential returns for participating companies.

Company Profile

Godawari Power & Ispat Limited operates in the steel sector and is classified as a mid-cap company. The company's strategic decisions regarding investment opportunities reflect its approach to capital allocation and business expansion initiatives.

Market Implications

The withdrawal from the rights issue demonstrates the company's selective investment strategy, where market conditions and subscription levels play a crucial role in decision-making processes. This approach allows the company to maintain flexibility in its investment portfolio while focusing on opportunities that align with its strategic objectives.