Godawari Power & Ispat Increases Stake In Godawari New Energy To 100% After Share Conversion

In an effort to improve its reputation in the clean energy sector, Godawari Power and Ispat Limited (GPIL) has announced a major internal restructuring involving its wholly owned subsidiary, Godawari New Energy Private Limited. In order to increase its total stake in the subsidiary without using any additional funds, the corporation notified stock markets that it had converted a sizable tranche of preference shares into equity shares.

Godawari Power and Ispat Limited (GPIL) shares ended at Rs 262.00 on the NSE on March 20, 2026, a gain of 4.51% from the previous close, after the announcement. Following the company's announcement that it has converted Rs 198.90 crore worth of preference shares into equity in its wholly owned subsidiary, Godawari New Energy Private Limited (GNEPL), shares shot up to 6.78% intraday. Throughout the session, the stock saw an intraday high of Rs 267.90 and a low of Rs 252.55.

The conversion of 0.1% Non-Cumulative Participating Optionally Convertible Redeemable Preference Shares (OCRPS), which were initially allotted in two stages on November 18, 2025, and December 16, 2025, is the cause of the development. These preference shares, which totalled 12.49 crore and 7.39 crore units under Series I and Series II, respectively, were converted into an equivalent number of equity shares on March 18, 2026. As a result, GNEPL allotted 19.89 crore equity shares of Rs 10 each at par to GPIL.

After this conversion, GPIL's entire equity ownership in GNEPL increased dramatically from 10.11 crore shares to 30 crore equity shares, or 100% of the subsidiary's paid-up capital. Importantly, this increase in stake has been achieved without any fresh infusion of funds, as the conversion simply reclassified the earlier preference share investment-valued at Rs 198.90 crore-into equity.

This transaction qualifies as a related party transaction since GNEPL is a wholly owned subsidiary of GPIL. However, the company clarified that the conversion was executed at arm's length, and apart from this relationship, no additional interest from the promoter group exists in the entity.

Godawari New Energy Private Limited is an energy company that specializes in Battery Energy Storage Systems (BESS). The firm was founded on June 25, 2025, and is currently in the initial phase of building a 20 GWh battery energy storage facility. This project places GPIL strategically in the evolving landscape of power ecosystems and is in line with the broader industry move toward renewable energy infrastructure and energy storage technologies.

Financially speaking, GNEPL is still in its development; as of December 31, 2025, it claimed a net worth of Rs 101.10 crore and no turnover. The company's operational setup will be in Maharashtra, although its registered office is in Raipur, Chhattisgarh. Since this transaction includes the conversion of financial instruments rather than a direct monetary investment, it is non-cash in nature.

Founded in 1999, Godawari Power & Ispat Limited (GPIL) is a prominent integrated steel company situated in Raipur and listed on the NSE and BSE. It is a division of the Hira Group and focuses on ferro alloys, steel billets, pellets, sponge iron, and iron ore mining.