Merger News: ₹10 thousand crore company announced merger, shares fell 10% in a month

This company is Godawari Power & Ispat Ltd. The company is associated with iron and steel, power and mining sectors. Besides, the company exports to the domestic market as well. Its share has fallen 6 percent in a week and 3 percent in three months. At the same time, the share has given a return of 400 percent in 3 years.

Company merger has been announced. According to the information released on the exchange, the merger has been approved in the board meeting held on March 18. Godawari Energy Limited will be merged into Godawari Power & Ispat Ltd.

This decision will help in taking the company’s business forward. However, approval is yet to be obtained from many places on the merger. The promoters’ stake in the company is 63.26 percent. There has been no change since two quarters. Buying in shares is going on by FIIs i.e. Foreign Institutional Investors. The stake in December 2022 was 3 percent. After this it increased to 3.39 percent, in June 2023 it increased to 3.64 percent, in September 2023 it increased to 4.66 percent, in December 2023 it increased to 5.40 percent.

Similarly, buying of shares by DIIs i.e. domestic institutional investors is going on. The stake in December 2022 was 0.75 percent. After this it increased to 1.06 percent, in June 2023 it increased to 1.14 percent, in September 2023 it increased to 1.52 percent, in December 2023 it increased to 2.09 percent.