Godawari Power & Ispat Limited (GPIL) has announced that its board has approved a major investment into Deccan Gold Mines Ltd (DGML) as part of the company’s upcoming rights issue. The decision was taken during the board meeting held on December 4, 2025, according to the stock-exchange filing.
GPIL said it will act as a Specific Investor in the DGML rights issue and will subscribe to any shares that remain unsubscribed—ensuring that at least 90% of the total issue size is completed. The company has also reserved the right to absorb the entire undersubscribed portion up to 100%, provided its total shareholding (along with group entities) does not cross 25% of DGML’s post-issue capital, in line with regulatory limits.
The investment will be made at Rs 80 per share (including Rs 79 premium), and GPIL will subscribe only to the unsubscribed portion.
Why GPIL is investing in DGML
DGML is India’s only listed gold mining company, with exploration and mining initiatives across Kyrgyzstan, India, Finland, Mozambique and Tanzania. The filing notes that the company is in an advanced stage of gold mining and processing at two mines—one in India and another in Kyrgyzstan. GPIL said the investment aligns with its long-term value strategy and will be “value accretive for shareholders.”
GPIL also disclosed that one of its promoter group companies, Hira Infra-tek, already holds 9.65% in DGML, and 26% in Avelum Partners, a Kyrgyzstan subsidiary of DGML, though the transaction itself does not fall under related-party rules.
Timeline
The investment and allotment under the rights issue are targeted to be completed on or before December 31, 2025, depending on the timelines in the Letter of Offer.