Godawari Power & Ispat Ltd has informed that the Board of Directors of the Company at its meeting held on November 22, 2008, has reconsidered the proposal for Buy Back of equity shares of the Company, which was approved by the board in its meeting held on October 25, 2008 and it has been now decided to withdraw the same in order to conserve the cash resources of the Company, in view of changing Global and Domestic Steel Industry Scenario.
Further the Company has decided to sell the entire surplus power in open market in view of attractive price realisation and better margins, as compared to margins available from captive consumption of power in manufacturing of steel billets & ferro alloys and consequently, it has been strategically decided to temporarily cut down the production of steel billets and ferro alloys, until further decision.
The other divisions of the Company namely Sponge Iron, Power Generation, Wire Drawing continue to function normally. The Companys subsidiary M/s. RR Ispat Ltd, which was procuring steel billets from the Company, has started procuring the same from market and the Rolling Mill and Wire Drawing divisions of the subsidiary Company also continues to function normally.
Further the Company has decided to sell the entire surplus power in open market in view of attractive price realisation and better margins, as compared to margins available from captive consumption of power in manufacturing of steel billets & ferro alloys and consequently, it has been strategically decided to temporarily cut down the production of steel billets and ferro alloys, until further decision.
The other divisions of the Company namely Sponge Iron, Power Generation, Wire Drawing continue to function normally. The Companys subsidiary M/s. RR Ispat Ltd, which was procuring steel billets from the Company, has started procuring the same from market and the Rolling Mill and Wire Drawing divisions of the subsidiary Company also continues to function normally.
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