Godawari Power and Ispat Completes Merger, Approves Rs 7,000 Crore Steel Plant

Shares of Godawari Power and Ispat Ltd rose 4.88 per cent to Rs 264.20 as of 2.40 PM on Tuesday. The gains came on a day marked by two significant disclosures from the company, the completion of its merger with Godawari Energy Limited and the board's approval for a large-scale steel plant in Chhattisgarh.

Merger with Godawari Energy Complete
The amalgamation of Godawari Energy Ltd with Godawari Power and Ispat Ltd has become effective. The company informed BSE and NSE that it had received a certified copy of the order dated March 12, 2026, from the National Company Law Tribunal, Cuttack Bench, sanctioning the Scheme of Amalgamation. The order was filed with the Registrar of Companies on March 23, 2026, making that the effective date of the merger. Godawari Energy Ltd was a wholly-owned subsidiary of Godawari Power and Ispat Ltd. The appointed date for the scheme is April 1, 2025. The process had been in motion since August 2025, with the company filing multiple intimations with the exchanges through the course of the proceedings.The NCLT also issued a Corrigendum Order dated March 11, 2026, to address minor typographical corrections in its earlier order. The corrigendum is non-material in nature.

Rs 7,000 Crore Steel Plant Approved
In a separate development, the board of directors at its meeting held on March 24, 2026, approved the setting up of an integrated steel plant with a capacity of 1 million tonnes per annum. The plant will manufacture heavy and medium section structural steel and wire rods. The plant is proposed to be set up at village Sarora, Tehsil Tilda, District Raipur, Chhattisgarh, approximately 50 kilometres from Raipur. The total cost is estimated at Rs 7,000 crore, to be funded through debt and equity in a 1:1 ratio, with the equity portion to be met through internal accruals. The company stated the project is aimed at strengthening its presence in the steel sector and capitalising on the growing demand for structural steel in India.

About the Company
Godawari Power and Ispat Limited is engaged in iron ore mining and the manufacture of iron ore pellets, sponge iron, steel billets, wire rods, H.B. wire, and ferro alloys. The company also generates electricity. The company has a market capitalisation of Rs 17,408 crore and has delivered a return of 41.45 per cent over the past year.

Disclaimer: The article is for informational purposes only and not investment advice.