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.

Godawari Power & Ispat Limited (GPIL) has announced a significant strategic move by approving an investment plan to participate as a specific investor in Deccan Gold Mines Ltd's (DGML) rights issue. This decision, made by GPIL's board, marks a notable expansion into the gold mining sector and demonstrates the company's commitment to diversifying its investment portfolio.

Key Points of the Investment Plan

• Investment Price: GPIL will invest at ₹80 per share in DGML's rights issue.
• Commitment: The company has agreed to subscribe to unsold shares up to 100% of the rights issue.
• Strategic Importance: This move indicates GPIL's interest in expanding its presence in the gold mining industry.

Financial Position of Godawari Power & Ispat

To understand the context of this investment decision, let's look at GPIL's recent financial position:

The company's financial position, with an increase in investments and total assets, suggests that GPIL may be well-positioned to make this strategic investment in DGML.

Implications of the Investment

1. Diversification: By investing in DGML, GPIL is diversifying its portfolio beyond its core power and steel businesses into the precious metals sector.

2. Potential for Growth: The gold mining industry may offer potential for growth, especially given ongoing global economic uncertainties that often drive demand for gold.

3. Strategic Alignment: This investment appears to align with GPIL's strategy of seeking opportunities in complementary sectors that could provide long-term value to shareholders.

4. Market Position: By committing to subscribe to up to 100% of the unsold rights issue shares, GPIL is positioning itself to potentially become a significant stakeholder in DGML.

Conclusion

Godawari Power & Ispat's decision to invest in Deccan Gold Mines' rights issue represents a strategic move to expand its business interests. With its financial foundation and willingness to diversify, GPIL appears to be taking steps to enhance its market position and create potential new revenue streams. Investors and market watchers may keep a close eye on how this investment unfolds and its impact on GPIL's future growth trajectory.

As the investment process progresses, more details about the exact stake GPIL will acquire in DGML and the long-term strategic plans for this investment may emerge. This development could mark the beginning of a new chapter in Godawari Power & Ispat's corporate journey.