By IANS,
Ahmedabad : City-based Electrotherm (India) Ltd, an engineering company engaged in steel and two-wheeler businesses, announced Thursday that it would issue 1.3 million shares to German financial institution DEG on a preferential basis.
Electrotherm shareholders approved the proposal at an extra-ordinary general meeting, the company said in a filing with the Bombay Stock Exchange (BSE).
The preferential issue will be made at a price not less than Rs.600 per share. At the maximum price, this could fetch the company around Rs.800 million ($20 million). However, the shares prices including premium are yet to be decided.
The meeting, which was held March 28, also authorised the board to qualified institutional buyers (QIBs) allotment of shares for an aggregate sum not exceeding Rs.3 billion.
The company has also made a preferential issue of shares to ICICI Venture Fund and International Finance Corp (IFC) in the past.
Electrotherm has three divisions – engineering, steel and electrical.
The engineering division manufactures induction, melting and refinancing furnaces, heating and hardening equipments used in steel and foundry industry. The steel division manufacturers TMT bars/construction and stainless steel, besides structural steel and DI pipes, while the electric vehicle division makes electric scooters.
In 2006-07, the net sales income of the company was Rs.7.3 billion.