Electrosteel Castings to raise Rs 600 crore

Electrosteel Castings Ltd has announced that the Board of Directors of the Company at its meeting held on September 15, 2009, has approved composite QIP issue for an amount upto Rs. 6000 Million.

The composite QIP issue consists of issue of Equity Shares and Non Convertible Debentures (NCDs) with warrants. This two-pronged strategy would enable the Company to derive maximum value from the fund raising process. The Equity issuance is expected to be of about Rs. 1000 - 1500 Million, and the NCDs size would be of about INR2000 Million. The NCDs shall also have the option to subscribe for the convertible warrants into Equity Shares for an amount upto Rs. 2000 Million. The warrant holder shall have an option to convert the same into Equity Shares between a period of 3 - 5 years. The issue price or Equity Shares and warrant would be determined in consultation with the Merchant banker based on the SEBI regulations.

The Company would now seek the approval of the Shareholders through postal ballot for the issue of above securities. The Company would take appropriate follow up action on receipt of approval from the Shareholders.

The stock closed the day at Rs.42.90, up by Rs.0.65 or 1.54%. The stock hit an intraday high of Rs.43.75 and low of Rs.42.50.

The total traded quantity was 931014 compared to 2 week average of 1216307.

Source : Equity Bulls

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