It is reported that Electrosteel Castings is planning to tap the QIP (qualified institutional placement) route to raise up to INR 600 crore through a mix of debt and equity.
Besides a plain equity offering of INR 100 to INR 150 crore, the company intends to issue non-convertible debentures and convertible warrants. The NCD issue size is likely to be INR 200 crore with tenure of three years.
The warrants, convertible into equity shares in 3 to 5 years, amount to INR 200 crore.
Based on the present market price of around INR 42 a share the promoters’ holding will not be reduced by more than 3% to 5%.
The Kejriwal family promoters of ECL owns around 45.57% in the company.
(Sourced from http://www.steelguru.com/news/index/2009/09/17/MTEyMDg5/Electrosteel_Castings_to_raise_INR_600_crore_through_QIP.html)
Wednesday, September 16, 2009
Electrosteel Castings to raise INR 600 crore through QIP
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