Steel Exchange India Board To Consider Fundraise In Dec. 18 Meet

Steel Exchange India Ltd. on Wednesday said that its board of directors are scheduled to meet on Dec. 18 to consider and approve a proposal for raising of funds through various methods.

The steel maker plans to conduct the fundraise by issuing eligible securities in one or more tranches, according to an exchange filing.

The funds could be raised "through one or more public and/or private offerings, including preferential issue, qualified institutions placement and/or further public offering", the filing said.

However, the company added that such a move will be subject to various approvals, including the nod of shareholders. The board will consider and approve an extraordinary general meeting to seek approval from shareholders to raise the funds.

Earlier this month, Steel Exchange India had informed via an exchange filing that its promoter Umashiv Garments Pvt.’s pledge of over 25,00,000 shares, or a 0.21% stake, with a third party was cancelled, because the lender did not accept the pledge within the stipulated time frame.

In the quarter ended Sept. 30, Steel Exchange India had reported a net profit of Rs 2.72 crore, a decline of 25.48% from Rs 3.65 crore that it had posted as net profit for last fiscal's similar period.

Shares of the company closed 0.54% lower at Rs 11.14 apiece on the NSE, compared to a 0.13% decline in the benchmark Nifty 50. The stock has risen by 12.5% over the past 12 months, and by 6.6% on a year-to-date basis.