Godawari Power & Ispat Limited (GPIL) announced the successful conversion of Preference Shares held in its wholly-owned subsidiary, Godawari New Energy Private Ltd (GNEPL), into 198.90 million Equity Shares. This conversion, executed on March 18, 2026, resulted in GPIL holding 100% of GNEPL’s paid-up capital without any further cash infusion. GNEPL is currently developing a 20 GWh Battery Energy Storage System (BESS) Plant.
Acquisition Finalized Through Share Conversion
Godawari Power & Ispat Limited (GPIL) has finalized the increase of its investment stake in its wholly-owned subsidiary, Godawari New Energy Private Ltd (GNEPL), through the conversion of existing preference shares into equity. The announcement, made on March 20, 2026, confirms that GPIL’s investment now represents 100% of the paid capital of GNEPL.
Transaction Details and Consideration
The transaction involved the allotment of 19,89,00,000 Equity Shares of Rs 10/- each at par. This was achieved by converting 12,49,50,000 (Series 1) and 7,39,50,000 (Series 2) 0.1% Non-Cumulative Participating Optionally Convertible Redeemable Preference Shares. The conversion took place on March 18, 2026.
This action was entirely a Non-Cash Consideration. The total value represented by the converted shares amounts to Rs 198.90 Crores, which matches the initial cost of acquisition of the preference shares. Crucially, the company confirmed no further infusion of funds was required for this step.
Impact on Holding and Subsidiary Focus
Following the conversion, GPIL’s total equity shareholding in GNEPL increased from 10,11,00,000 shares to 30,00,00,000 Equity Shares, achieving complete ownership of the subsidiary’s paid capital.
GNEPL, which was newly incorporated on June 25, 2025, is focused on the Energy Sector, specifically Battery Energy Storage Systems (BESS). It is currently in the process of setting up a 20 GWh Battery Energy Storage System Plant in its First Phase. As of December 31, 2025, GNEPL reported a Net Worth of Rs. 101.10 Crores and NIL turnover, as it is in the pre-operational phase.
Related Party Disclosure
The company noted that since GNEPL is a wholly-owned subsidiary, the investment constitutes a related party transaction. However, the transaction was executed at an Arm’s Length Price based on the terms governing the original preference share issuance.
Source: BSE
