Godawari Power and Ispat Limited (GPIL) has approved an investment in Deccan Gold Mines Ltd (DGML). GPIL will act as a specific investor in DGML’s proposed rights issue and will subscribe to the unsubscribed portion to ensure at least 90% subscription. GPIL may take up to 100% of the unsubscribed portion, but its shareholding will not exceed 25% of DGML’s post-issued capital. The investment will be at ₹80 per share.
Investment Approval
The Board of Directors of Godawari Power and Ispat Limited has given the green light to an investment in Deccan Gold Mines Ltd (DGML). The decision was made at a meeting held on December 4, 2025, following a request from DGML.
Details of the Rights Issue
GPIL will participate as a specific investor in the proposed rights issue of DGML. It will subscribe to any portion of the rights issue that remains unsubscribed, ensuring that at least 90% of the total issue size is successfully subscribed.
Shareholding and Limits
GPIL reserves the right to take up the unsubscribed portion up to 100% of the rights issue, beyond the initial 90% commitment. However, the company’s shareholding, along with its group companies, will not exceed 25% of the post-issued paid-up and voting share capital of DGML.
Investment Price
The investment in DGML’s equity shares will be made at a price of ₹80 per share, which includes a premium of ₹79.
Target Company Overview
Deccan Gold Mines Limited is involved in the mining of gold and other critical minerals. It has active operations and exploration initiatives in locations like Kyrgyzstan, India, and Tanzania. The company is in exploration stages and is advancing its gold mining and processing capabilities. Hira Infra-tek Limited, a promoter group company of GPIL, already holds 9.65% equity in DGML.
Financial Performance of DGML
DGML’s turnover for FY 2024-25 was ₹52.83 Lakhs. The turnover for FY 2023-24 was Nil, and for FY 2022-23, it was ₹32.54 Lakhs.
Completion Timeline
The indicative time period for completing this acquisition is on or before December 31, 2025, according to the letter of offer.
Source: BSE