Godawari Power & Ispat Boosts Capacity with New Cold Rolling Mill Contract

Godawari Power & Ispat Limited , a prominent player in the Indian steel industry, has taken a significant step towards expanding its manufacturing capabilities. The company has recently awarded a contract to John Cockerill, a renowned industrial equipment manufacturer, for the installation of a state-of-the-art 6 Hi Reversible Cold Rolling Mill at its facility in Tilda, Raipur.

Contract Details

The contract involves the supply and installation of a 6 Hi Reversible Cold Rolling Mill, a crucial piece of equipment in the steel processing industry. This advanced machinery is designed to produce high-quality cold-rolled steel sheets with superior surface finish and dimensional accuracy.

Strategic Expansion

This move by Godawari Power & Ispat Limited signifies a strategic expansion of its production capabilities. The installation of the new cold rolling mill is expected to enhance the company's ability to produce value-added steel products, potentially opening up new market opportunities and strengthening its position in the competitive steel sector.

Impact on John Cockerill

For John Cockerill, this contract represents a significant business win in the steel processing equipment sector. The company, known for its expertise in industrial engineering and equipment manufacturing, continues to solidify its presence in the Indian market through such high-profile projects.

Industry Implications

The investment in advanced cold rolling technology by Godawari Power & Ispat Limited reflects the ongoing modernization efforts in the Indian steel industry. As steel manufacturers strive to improve product quality and operational efficiency, such upgrades are becoming increasingly common, contributing to the overall growth and competitiveness of the sector.

This development underscores the dynamic nature of India's steel industry and the continuous efforts by companies to enhance their production capabilities and product offerings.

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Godawari Power & ISPAT is set to hold an Extra-Ordinary General Meeting (EGM) on October 15, 2025, to seek shareholder approval for a significant capital raising initiative. The company plans to issue up to 2.04 crore warrants at ₹245 per warrant, aiming to raise ₹500 crore through a preferential allotment.

Key Details of the Proposed Warrant Issue

Issue Size: 2,04,08,220 warrants
Issue Price: ₹245 per warrant
Total Fundraise: ₹500.00 crore
Conversion Ratio: Each warrant is convertible into one equity share
Conversion Period: Within 18 months from the date of allotment

Allottees and Allocation

The warrants will be issued to a mix of promoters, promoter group members, and identified non-promoters:

Allottee	Category	Number of Warrants
Mrs. Sarita Devi Agrawal	Promoter Group	41,63,300
Mr. Dinesh Agrawal	Promoter	12,24,500
Mr. Kumar Agrawal	Promoter Group	22,04,200
Hanuman Prasad Agrawal (HUF)	Promoter Group	22,04,200
Mrs. Meena Gupta	Non-Promoter	4,08,150
Shree Nakoda Pipe Impex Private Limited	Non-Promoter	20,40,770
Meridien Realtech Private Limited	Non-Promoter	81,63,100

Utilization of Funds

Godawari Power & ISPAT has outlined the following plans for the funds raised:

Cold Rolling Mill Project: ₹200.00 crore
Investment in Subsidiary: ₹175.00 crore for Battery Energy Storage System projects through Godawari New Energy Private Ltd
General Corporate Purposes: ₹125.00 crore

Impact on Shareholding

Post-issue, assuming full conversion of warrants:

Promoter and promoter group shareholding: Expected to increase to 63.05% from the current 63.51%
Public shareholding: Expected to decrease to 36.95% from the current 36.49%

Regulatory Compliance and Monitoring

The company has appointed CARE Ratings Limited as the monitoring agency to oversee the utilization of the issue proceeds.
The warrant issue price of ₹245 is higher than the minimum price calculated as per SEBI ICDR Regulations, which stands at ₹243.60.

EGM and Voting Details

Date and Time: October 15, 2025, at 11:30 AM IST
Mode: Video Conferencing (VC) / Other Audio-Visual Means (OAVM)
E-voting Period: October 11-14, 2025
Cut-off Date for Voting Eligibility: October 8, 2025

Shareholders are encouraged to participate in the EGM through the provided VC/OAVM facility and exercise their voting rights on this significant corporate action.

The proposed warrant issue represents a strategic move by Godawari Power & ISPAT to strengthen its financial position and fund its growth initiatives, particularly in the cold rolling and energy storage sectors.