Steel Exchange India Board Approves Rs 600-Crore Fundraise

Steel Exchange India Ltd. on Wednesday said that its board of directors has approved raising a total of Rs 600 crore.

Earlier this month, the company had informed via stock exchange filings that its board of directors was scheduled to meet on Dec. 18 to consider and approve a proposal for raising of funds.

The company is allowed to issue such a number of equity shares having a face value of Re 1 each, “or any other eligible securities or any combination thereof, for an aggregate amount not exceeding Rs 600 crore,” according to the company’s exchange filing.

The board has authorised the company to raise funds in one or more tranches by issuing equity shares and/or other securities convertible into equity shares.

The price of the securities should be "inclusive of such premium as may be fixed on such securities" and as may be permissible under applicable law.

While the steel products maker can decide to opt for a private placement, preferential issue, qualified institutions placement, or other permissible mode or in a combination of the various modes, the board has stated that it should be “in accordance with the provisions of the Securities and Exchange Board of India.”.

The company’s ‘fundraising committee’ was delegated the powers to decide the structure, form of issuance, price, timing, terms and conditions thereof, and all other matters related or incidental thereto.

The filing added that the fundraise is subject to various approvals, including those from the company's shareholders and applicable regulators.

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 Steel Exchange India Ltd. closed 2.17% lower at Rs 10.83 apiece on the BSE, compared to a 0.62% decline in the benchmark Sensex.