I would call it a smart move.
It has loaned 35cr (1% of GPIL mcap) to Prakash Industries with pledge of 9.8% stake (currently worth 90cr).
There is comfort that Prakash Ind is generating annual EBITDA of 300-400cr, CF conversion of 70-80%, new steel plant coming up (336cr CWIP as per 2Q BS).
If things go off, GPIL gets a decent stake at a reasonable valuation (~3x EBITDA)
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