Godawari Power & Ispat Limited (GPIL) has announced its entry into the non-ferrous metals recycling business by acquiring a 51% stake in Jammu Pigments Limited (JPL). The transaction values JPL at approximately ₹500 crore and involves an infusion of ₹175 crore by GPIL for debt repayment and growth capital. Additionally, GPIL will purchase ₹79.52 crore worth of shares from JPL’s existing promoters in two tranches.
JPL specializes in recycling lead-acid batteries and other secondary lead waste and has the capability to process industrial hazardous waste to recover metals such as lead, tin, zinc, copper, and cadmium. Its operations are based in Kathua, Jammu & Kashmir, and Kota, Rajasthan, and it operates through fully owned subsidiaries.
The acquisition process is divided into two phases. In the first tranche, GPIL will acquire a 49% stake through the issuance of compulsory convertible preference shares and a share purchase. In the second tranche, an additional 2% stake will be purchased for approximately ₹10 crore. The transaction, subject to conditions precedent, is expected to conclude by March 31, 2024.
JPL’s consolidated revenue for FY 2023-24 was ₹1,173.78 crore, with a profit after tax (PAT) of ₹26.98 crore. The company had total borrowings of ₹339 crore as of October 31, 2024.
Upon completion, JPL will become a subsidiary of GPIL and will be jointly managed by GPIL representatives and the existing management team. GPIL will nominate directors to JPL’s board, with one serving as an executive director.
This acquisition aligns with GPIL’s strategy to diversify its portfolio and enter the capital-intensive non-ferrous metals segment. GPIL canceled a previously planned acquisition of RG Pigments Pvt. Ltd. as part of this strategic shift.
The press release issued by GPIL confirmed that Ramesh Agrawal, Managing Director of JPL, will continue to lead the company for five years under the new arrangement.