Godawari Power & Ispat has announced its board approval for a substantial investment of ₹73.95 crore in its wholly owned subsidiary, Godawari New Energy Private Ltd. This strategic investment demonstrates the company's commitment to strengthening its energy business segment and expanding operational capabilities.

Investment Structure and Share Issuance

The investment will be executed through the issuance of preference shares to the subsidiary. The company has approved the issuance of 7,39,50,000 preference shares to facilitate this capital infusion.

Fund Utilization Strategy

The approved investment amount is earmarked for two primary purposes within Godawari New Energy Private Ltd:

• Capital Expenditure: Supporting infrastructure development and equipment procurement
• Working Capital Requirements: Ensuring smooth operational activities and business continuity

Strategic Implications

This investment reflects Godawari Power & Ispat's strategic focus on its energy business vertical through its dedicated subsidiary. The substantial capital allocation indicates the company's confidence in the growth potential of its energy operations and commitment to scaling up this business segment.

The preference share structure provides flexibility in capital management while maintaining full ownership control over the subsidiary's operations and strategic direction.

Godawari Power & Ispat Limited has made a significant investment of ₹73.95 crores in its wholly owned subsidiary Godawari New Energy Private Limited (GNEPL) to advance its Battery Energy Storage System (BESS) project development. The investment was executed through allotment of preference shares on December 16, marking a major step in the company's energy infrastructure expansion.

Investment Structure and Details

The company received intimation on December 17 regarding the allotment of 7,39,50,000 Non-Cumulative Participating Optionally Convertible Redeemable Preference Shares (Series 2) of ₹10 each at par. The investment totaling ₹73.95 crores was made on a rights basis to support GNEPL's capital expenditure and working capital requirements for setting up the Battery Energy Storage System plant.

Subsidiary Company Profile

Godawari New Energy Private Limited was newly incorporated on June 25, 2025, and is currently in the process of setting up a 20 GWh Battery Energy Storage System plant in the first phase. The subsidiary has its registered office in Raipur, Chhattisgarh, while operations will be established in Maharashtra. As of September 30, 2025, GNEPL reported a net worth of ₹25.50 crores with nil turnover, reflecting its early-stage development status.

BESS Project Expansion Context

This investment aligns with Godawari Power & Ispat's broader BESS project expansion strategy, which involves scaling up the project capacity from the original 10 GWh to 40 GWh with a total investment commitment of ₹1,625.00 crores. The current ₹73.95 crore investment specifically supports the first phase development of 20 GWh capacity through the subsidiary structure.

Strategic Significance

The investment represents a related party transaction as GNEPL is a wholly owned subsidiary of Godawari Power & Ispat Limited. The funds will be utilized by GNEPL to meet proposed capital expenditure and working capital requirements for the Battery Energy Storage System plant setup. This strategic move positions the company to participate significantly in India's growing energy storage infrastructure market while diversifying beyond its traditional steel sector operations.