(i) Electrosteel Steels Ltd has set up 2.51 Million Ton Per Annum (MTPA) Greenfield Integrated Steel Plant near Siyaljori village, in the Bokaro district of Jharkhand. It primarily consists of a Sinter Plant, Coke Oven, Blast Furnace, Basic Oxygen Furnace, Billet Caster, Wire Rod Mill, Bar Mill, and Power Plant. ESL has established excellence at every stage of production by bringing international expertise and solutions from reputed manufacturers. Along with the latest technology, the plant operates in synchronization with the highest ecological standards.
(ii) The Company’s product range includes Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes.
(iii) NCLT Case:
Due to huge debt on the company, the banks took the company to NCLT as they were unable to pay its debt obligation. And in the NCLT, Vedanta acquired the company. The following restructuring was done in the company.
a) The Board of the Company has been reconstituted on June 4, 2018, i.e. the effective date with nominees of Vedanta being inducted as a member of the Board.
b) Vedanta Star Limited (a wholly-owned subsidiary of Vedanta Limited) has on June 04, 2018, deposited Rs. 532,000.00 lakh in an escrow account (“Escrow Account”) of the Company for payment to financial creditors of the entire amount of sustainable debts in terms of the ARP out of total Outstanding amount of Rs. 12,71,913.21 lakhs and the same has been remitted to them on June 21, 2018.
c) 739,91,32,055 equity shares of Rs. 10 each were allotted on June 6, 2018, to financial creditors converting the non-sustainable debt to equity.
d) On June 14, 2018, the existing 980,83,67,078 equity shares including those allotted on June 6, 2018, to financial creditors as above have been reduced from Rs. 9,80,836.71 lakhs to Rs. 19,616.73 lakhs divided into 980,83,67,078 equity shares of Re. 0.20 each fully paid-up.
Simultaneously, 50 such shares of Re 0.20 each thereafter has been consolidated into 1 fully paid-up equity share of Rs. 10 each. The amount of Rs. 9,61,219.97 lakhs reduced as above in compliance with the Order of Hon’ble NCLT has been credited to Capital Reserve.
e) On June 15, 2018, 176,55,06,078 fully paid equity shares of Rs. 10 each were allotted to Vedanta Star Limited against the money deposited in Escrow Account, leaving the balance of Rs. 355,449.39 lakhs to be considered as long term interest-bearing loan.
f) Consequent to the above allotment and consolidation of shares, the equity share capital of the company stands at Rs. 19,61,67.34 lakhs divided into 196,16,73,420 equity shares of Rs.10 each. (ARP) by NCL
(iv) And finally, the company was acquired by Vendanta in 2018 and delisted the company from exchanges. The delisting price offered was Rs.9 per share. From thereon, the company has performed really well in terms of financials.
(v) When the Electrosteel was delisted, the EV was around 5300 Cr.
| Total Available Shares: | Not Available |
| Face Value: | ₹ 1 Per Equity Share |
| ISIN: | INE481K01021 |
| Lot Size: | 1000 Shares |
| Current Unlisted Share Price: | ₹ 10 Per Equity Share |
| Retail Discount: | Bulk Deal (1%) |
| Year | Revenue | EBITDA | OPM | PAT | NPM | Shares | FV | EPS |
| 2017 | 2,875.86 | 141.12 | 5% | -1,463.48 | -51% | 240.92 | 10 | -6.07 |
| 2018 | 3,621.26 | 423.62 | 12% | -6,138.85 | -170% | 240.92 | 10 | -25.48 |
| 2019 | 5,006.73 | 883.01 | 18% | 1,188.04 | 24% | 196.17 | 10 | 6.06 |
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Shaleen
I want to sell my 2000 shares of ESL
Pradeep Kumar
In the Feb, 2020 vedanta mentioned it hold the ESL 95.48 percent. I have some shares of ESL. What does this mean to public share holder, Any idea?
Does this mean they may issue vedanta shares for ESL? If so, what could be the swap ratio.
Market Wizard
As per the resolution plan.
1. The Electrosteel has total debt of 12,719 Cr when the banks took it to NCLT in 2017.
2. In the NLCT, the Vedanta bid was accepted.
3. The 12,719 Cr loan was restructured in two ways:
a) Rs. 5320 cr paid by Vendanta to banks.
b) Rest Rs. 7399 cr debt was converted into equity and shares were given to banks.
4. And finally, after the consolidation of equity shares in 50:1, the total shares left in the company were ~196 Cr.
5. Vedanta has given 90% shares i.e 176.4 Cr, Banks were given 14.78 Cr, and rest 4.82 Cr shares were there with the public.
As discussed above, Vedanta has put Rs. 5320 in the company and that money was given to banks. But how that is adjusted in the balance sheet?
Rs. 1760 cr in the form of equity and rest 3550 cr was introduced as debt in the company.
Now, what you are saying, the Vedanta might have bought the shares from the public. There is no news of merging of the acquired business into Vedanta.
Even if Vedanta looking for a merger, the swap ratio will be find out by valuing the business on the date of merging.
Ajit
NCLT Kolkata already approved Merger of Vedanta Star Limited with Electrosteel Steels Limited.
They Alloted ESL shares to Vedanta against VSL shares.
After Merger the new entity will get new face and will rename as “Vedanta Steel Limited” or other name which approve by board.
So Within Next 2-3 months picture will be clear what happens next.
I think in next AGM company will come up with some positive resolutions before shareholders for approvals.
So wait couple of months. Company performing very well.
Kuber
Any idea when will the shares relist
Market Wizard
As such there is no news from the management side regarding the listing of Electrosteel Steels.
Kumud
I have 2050 shares of electrosteel steel Ltd after its delisting.i am interested in selling.
Ajit
On what price you are selling.
Ajit
I want to sell 1000 Electrosteel Steel ( Vedanta Steel Ltd) Shares @130/share
pankaj gupta
i want purchase shares in this company. kindly tell me price.
thanks.
Market Wizard
Not available.
Anurag
I have 790 shares. Will sell @ 350/share
James
I have 999 shares. Will sell at 350/share
Market Wizard
Currently, the share selling rate is Rs. 10 per share.
Raj
I want to sell 800 Electrosteel Shares @ 30/share
Market Wizard
Currently, the price is Rs. 10 per share.