Godawari Power Share Split, Godawari Power Share Bonus: Godawari Power & Ispat has announced to split its equity shares. The Board has approved the proposal of stock split in the ratio of 1:2. The decision is aimed at improving the liquidity of the company's share and also increasing the participation of small and retail investors.
“The board approved the proposal for sub-division of equity shares of face value of Rs 10 each of the company into 2 equity shares of Rs 5 each, subject to approval of the shareholders of the company," Godawari Power said in an exchange filing.
Meanwhile, Godawari Power & Ispat share price hit the 5 per cent upper circuit of Rs 1,269.90 per share on BSE. On the NSE as well, Godawari Power & Ispat share price hit upper circuit of Rs 1,270.50 per share.
The company's board also decided to issue bonus shares in the ratio of 1:1. The bonus will be issued by capitalizing the free reserves after the proposal for the split of the shares.
“One equity share of Rs 5 each as bonus for each equity share of 5 each fully paid up (Post Sub-division) of the company," the company said.
To accommodate the proposed issue of bonus shares, the company has decided to increase the authorised equity share capital from existing Rs 49.8 crore to Rs 70.8 crore. It will create additional 2.1 crore equity shares of Rs 10 each (4.2 crore equity shares of Rs 5 each after the split).
Godawari Power & Ispat has decided to withdraw the scheme of arrangement for demerger of power business undertaking of Jagdamba Power & Alloys Limited & merge into the company.