Electrosteel Castings to raise INR 600 crore through QIP
Thursday, 17 Sep 2009
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.
