The board of directors of Electrosteel Castings on Thursday decided to issue 1.7 crore shares (Re 1 paid-up) at a price of Rs 13.85 (premium of Rs 12.85) a share, aggregating up to Rs 23.63 crore to the promoters on preferential basis.
The company has convened an EGM on November 23 to seek shareholders’ approval for the issue.
Electrosteel Castings also would conduct a postal ballot seeking shareholders’ nod in relation to the investment limit in its associate company Electrosteel Steels Ltd (ESL).
Electrosteel’s current investment limit in ESL is Rs 3,500 crore.
ESL, which is setting up an integrated steel project in Jharkhand, got the approval of the Corporate Debt Restructuring Cell for its existing term loan worth Rs 6,181 crore and fresh borrowing worth Rs 1,307 crore.
Net dips
Meanwhile, ductile iron pipes maker Electrosteel Castings reported a net profit of Rs 19.49 crore in the second quarter of the current fiscal against Rs 37.04 crore in the corresponding period of FY-13. per cent. This translates to a fall of 47 per cent.
Net revenue for the quarter at Rs 566.97 crore grew 14.79 per cent. Net profit for the first half of FY-14 stood at Rs 20.04 crore (Rs 19.71 crore).
On Thursday, , the Electrosteel Castings stock closed at Rs 13.99, down 2.91 per cent, on the BSE.