December 02, 2008

Electrotherm to issue 1.3 million shares to German firm DEG

Electrotherm (India) Limited has announced that it would issue 1.3 million shares to German financial institution DEG on a preferential basis. Electrotherm shareholders approved the proposal at an extra ordinary general meeting.

The preferential issue will be made at a price not less than INR 600 per share. At the maximum price, this could fetch the company around INR 800 million. However, the shares prices including premium are yet to be decided.

The meeting, which was held on March 28th 2008, also authorized the board to qualified institutional buyers allotment of shares for an aggregate sum not exceeding INR 3 billion. Electrotherm has also made a preferential issue of shares to ICICI Venture Fund and International Finance Corporation in the past.

Electrotherm has 3 divisions namely engineering, steel and electrical. The engineering division manufactures induction, melting and refinancing furnaces, heating and hardening equipments used in steel and foundry industry. The steel division manufacturers TMT bars construction and stainless steel, besides structural steel and DI pipes, while the electric vehicle division makes electric scooters.