Godawari Power and Ispat Limited on Monday announced that its board of directors have approved the merger of its wholly owned subsidiary, Godawari Energy Limited with the company. “The Scheme of Amalgamation is subject to necessary statutory and regulatory approvals including the approvals of the National Company Law Tribunal/other regulatory authorities and the respective shareholders of both the companies as may be directed by National Company Law Tribunal,” the company said in a regulatory filing.
While Godawari Energy is in the business of generation of power, Godawari Power and Ispat is in the business of manufacturing of iron and steel and generation of power.
The rationale, per the company, for proposed amalgamation of wholly owned subsidiaries with the company is, a) more efficient utilization of capital, assets and creating a stronger base for future growth; b) the two companies believe that resources of the merged entity can be pooled to unlock the opportunity for creating shareholder value; c) greater integration and greater financial strength and flexibility for the Transferee Company, which would result in maximising overall shareholder value, and will improve the competitive position of the Transferee Company; d) reducing time and efforts for consolidation of financials and efficient tax planning at the group level; and e) cost savings are expected to flow from more focused operational efforts, rationalization, standardisation and simplification of business processes, and the elimination of duplication, and rationalization of administrative expenses.
Furthermore, the board also approved the recommendation of the Nomination and Remuneration Committee, pertaining to appointment of Sunil Duggal as Non-Executive Independent Director and Roma Ashok Balwani as Non-Executive Independent Women Director of the Company for a period of 5 consecutive years.
Sunil Duggal is an Electrical Engineer from Thapar Institute of Engineering & Technology, Patiala. He is an Alumnus of IMD, Lausanne Switzerland and IIM Calcutta. He was associated with International Zinc Association as Vice Chairman and Former President of Indian Lead Zinc Development Association. He is the Chairman of National Committee of Mining -Confederation of Indian Industry (CII), Former President of Federation of Indian Mineral Industries (FIMI), Former Co-Chair -FICCI Non-Ferrous Metals Committee-2018 and Former Chairman -Skill Council for Mining Sector, India. Sunil Duggal has over 37 years of experience in leading high-performance teams and more than 20 years in leadership positions.
Roma Ashok Balwani is a Graduate in Economics, with a PostGraduation in Marketing from Mumbai University, is currently associated with John Cockerill India Limited as Independent Director for almost a decade and she is also Chairperson of Nomination and Remuneration Committee and CSR committee of John Cockerill India Limited. Previously, she was Sr. Advisor, at Vedanta Group. She has over four decades of experience in manufacturing companies such as L&T, Mahindra Group & Vedanta Group in various aspects of strategic business in her previous roles as President, Group Communication, CSR and Sustainable Development at Vedanta Resources plc.