Electrosteel Integrated, which is backed by a number of financial investors including IL&FS and IFCI, is looking to raise Rs 368-400 crore (as per VCCircle estimates) through a public float. The company could price its issue(which also has a greenshoe option) at par the face value of shares of Rs 10, the price at which it has allotted shares to all investors over the last one year.
The company is promoted by Electrosteel Castings which owns 42%. Post issue, it will get diluted to around 34% post IPO. Another large shareholder in the company is international steel firm Stemcor that owns 24% as of now.
If Electrosteel Integrated actually prices the issue at Rs 10-11, it could be eyeing a market cap of around Rs 2,050 crore which will be more than that of Electrosteel Castings (Rs 1,758 crore).
The IPO is largely (Rs 250 crore) to part finance the construction of an integrated steel and D.I. pipe plant having a capacity of 2.2 MTPA in the state of Jharkhand. Some of the money (Rs 22 crore) will also be used as margin money towards bank guarantees besides other purposes.
Among the key investors: IFCI has invested Rs 100 crore and IL&FS and its managed funds have together invested more than Rs 100 crore.