At its meeting held on November 6, 2024, the Board of Directors of Godawari Power and Ispat Limited approved the proposal to acquire up to a 60% equity stake in R. G. Pigments Private Limited (RGP) for a consideration of Rs. 56.75 Crores.
RGP, which is engaged in the recycling of non-ferrous metal industrial waste, currently has a processing capacity of 7,500 MTPA, with plans to expand this capacity to 32,500 MTPA. The primary purpose of the acquisition is to diversify the Company’s business activities into the recycling of non-ferrous metal industrial waste, a business outside of its main operations.
No governmental or regulatory approvals are required for the acquisition, which is expected to be completed on or before March 31, 2025. The consideration for the acquisition will be in the form of cash, with the Company acquiring a 60% stake in RGP through the allotment of fresh equity shares. The total cost of the acquisition is Rs. 56.75 Crores.
RGP, incorporated on February 7, 1996, has shown steady growth with turnover figures of Rs. 40.03 Crores, Rs. 37.88 Crores, and Rs. 46.70 Crores in the financial years 2021-22, 2022-23, and 2023-24, respectively. RGP’s existing facility is located in Kota, Rajasthan, and the company intends to expand its capacity significantly in the coming years.