ESL has operational capacity of 1.5 MTPA and is evaluating a proposal to increase capacity to 3 MTPA over the medium term.About the parentVedanta is a diversified metals, mining, power, and oil and gas company. Mirae Asset Emerging Bluechip Fund Direct-Growth, ICICI Prudential Bluechip Fund Direct-Growth, Electrosteel Steels board approves delisting of company, The board of Electrosteel Steels Monday approved the proposal to delist the. Mr. In June 2018, Vedanta, through its wholly owned subsidiary, VSL, acquired 90% stake in ESL (current operational capacity of 1.5 MTPA) for Rs 5,320 crore. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue. Also, a part of the power business (1980 MW) is conducted through wholly owned subsidiary, Talwandi Sabo Power Ltd. CRISIL PRIVACY CRISIL respects your privacy. With a tradition of independence, analytical rigour and innovation, CRISIL sets the standards in the credit rating business. Liquidity is supported by healthy cash and equivalent of more than Rs 1,350 crore as on March 31, 2020. The Company offers pig iron, billets, TMT bars, wire rods, and ductile iron pipes. Though Electrosteel’s current market price is Rs 1.10 per share, it’s well accepted that equity shares of an insolvent company are usually worth nothing. CRISIL has also instituted several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and microfinance institutions. Vedanta Star Ltd (VSL, erstwhile holding company of ESL), which had 90% stake in ESL, has been merged with ESL, effective from March 25, 2020. Thereafter, Mr. Katial took charge as the President (Operations) Global Steel Holding Ltd with Libyan Steel, Libya. It primarily consists of a Sinter Plant, Coke Oven, Blast Furnace, Billet Caster, Wire Road Mill, Bar Mill and Power Plant. Vedanta, through its wholly owned subsidiary VSL, acquired 90% stake in ESL, under the Insolvency and Bankruptcy Code (IBC), 2016, for Rs 5,320 crore on June 4, 2018. CRISIL assumes no obligation to update its opinions following publication in any form or format although CRISIL may disseminate its opinions and analysis. CRISIL has reaffirmed its 'CRISIL AA/Negative/CRISIL A1+' ratings on the bank facilities of Electrosteel Steels Limited (ESL).On April 03, 2020, CRISIL had revised its outlook on the long-term bank facilities of ESL to 'Negative' from 'Stable', while reaffirming the ratings at 'CRISIL AA'. Cook Tilly India were money-related counsels for the plan, and Khaitan and Co. were lawful counsels. We pioneered the concept of credit rating in India in 1987. Let's reshape it today, Hunt for the brightest engineers in India. Lawyers for Electrosteel declined to comment. CRISIL rating contained in the Report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment or other business decisions. Choose your reason below and click on the Report button. CRISIL is registered in India as a credit rating agency with the Securities and Exchange Board of India (“SEBI”). ESL was incorporated in Ranchi, Jharkhand, India in December 2006. CRISIL has in place a ratings code of conduct and policies for analytical firewalls and for managing conflict of interest. We also pioneered a globally unique rating service for Micro, Small and Medium Enterprises (MSMEs) and significantly extended the accessibility to rating services to a wider market. Disruption in the supply chain and reduced sales volume on account of the prolonged global pandemic, resulting in lower-than-expected operating profitability, will be key monitorables. In no event shall any CRISIL Party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Report even if advised of the possibility of such damages.CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. PRODUCTS Internationally accredited superior quality DI Pipes and Fittings. Copyright © 2021 Bennett, Coleman & Co. Ltd. All rights reserved. CRISIL has also instituted several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and microfinance institutions. For reprint rights: Electrosteel Steels acquisition led to a turnaround in firm: Vedanta, Electrosteel Steels shares go haywire on delisting announcement, Vedanta acquires management control of Electrosteel Steels, Vedanta gets management control of Electrosteel Steels, IMA for Electrosteel Steels till Vedanta gets control, IBBI slaps penalty on Electrosteel Steels resolution professional. As steel is an essential commodity, the nationwide lockdown to contain the spread of Covid-19 has had a fairly limited impact on ESL's operations. Electrosteel Steels Limited is one of the Steel Plant companies in India. Its bid for Electrosteel Steels was at least Rs2,000 crore lower than Vedanta’s. The stock of SPL tanked 18 per cent to Rs 109.50 on the … The budgetary pointers post-merger will uphold Electrosteel Castings to deal with its credit score.” Electrosteel Castings was shut last financial year with incomes of Rs 2,480 while Srikalahasti Pipes timed a revenue of Rs 1,663 crore. We rate the entire range of debt instruments, such as, bank loans, certificates of deposit, commercial paper, non-convertible / convertible / partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. Vedanta Star Ltd (VSL, erstwhile holding company of ESL), which had 90% stake in ESL, has been merged with ESL, effective from March 25, 2020. However, expected decline in steel demand and lower realisations may weigh on the operating margin in fiscal 2021, despite some support from softer raw material cost. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL. Electrosteel Steels Limited. Vedanta Limited's Resolution Plan for Acquisition of Electrosteel Steels Limited Approved by National Company Law Tribunal News provided by. The company was founded in 2006, has main office as head office in Bokaro. Vedanta Ltd. on Tuesday said the National Company Law Tribunal, Kolkata Bench, has approved the scheme of amalgamation of its arm Vedanta Star Ltd. with Electrosteel Steels Ltd. Post the amalgamation becoming effective, Vedanta will directly hold 95.48 percent in ESL. Your Reason has been Reported to the admin. Effective March 25, 2020, as per the scheme of amalgamation approved by National Company Law Tribunal, VSL merged with ESL. Vedanta's operations include copper, iron ore, aluminium assets at Jharsuguda and Lanjigarh in Odisha, and power (2400-MW and 1215-MW captive power plants for the aluminium business). Electrosteel Castings Limited Lanco Industries Ltd (48.54%) Electrosteel Steels Ltd (42.02%) SPV to set up 2.2 mn TPA integrated steel cum DI Pipe Plant Installed Total project cost of Rs.73,620 mn - ECL equity contribution of Rs.7,000 mn (as on August 20th, 10) ECL acquired 46% stake in the company in 2002 Having an Capacity of: DI Pipes–180,000 We have delivered independent opinions, actionable insights, and efficient solutions to over 1,00,000 customers. In preparing our Report we have not taken into consideration the objectives or particular needs of any particular user. *Cash credit has sublimit for non-fund-based facilities, Annexure - Rating History for last 3 Years, Annexure - Details of various bank facilities. Why follow tips? For more information, visit www.crisil.com  Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOKAbout CRISIL RatingsCRISIL Ratings is part of CRISIL Limited (“CRISIL”). CRISIL keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. It is one of the famous names, providing Steel … 05 Oct, 2020, 10.41 PM IST. The ratings reflect the strong support expected from the parent, Vedanta Ltd (Vedanta; 'CRISIL AA/Negative/CRISIL A1+'), and ESL's strategic importance to the parent. About CRISIL LimitedCRISIL is a leading agile and innovative, global analytics company driven by its mission of making markets function better. CRISIL Ratings is part of CRISIL Limited (“CRISIL”). Post the merger, Vedanta now directly holds around 95.5% shares of ESL. Electrosteel Steels Limited is an India based steel products providing company. Post merger, the combined entity will become a leading manufacturer of ductile iron pipes. Post the merger, Vedanta now directly holds around 95.5% shares of ESL. The Report is intended for the jurisdiction of India only. DI Pipes and Fittings. However, effective from March 25, 2020, VSL has been merged with ESL and Vedanta now directly holds 95.5% share in ESL. The merged entity will have total DI pipe manufacturing capacity of 8 lakh tonne in India with a market share of 30 %, the company said in a statement. Vedanta Limited will now directly hold 95.49% in Electrosteel Steels Ltd (ESL) This follows nod from NCLT Kolkata for scheme of amalgamation of Vedanta Star Limited with ESL. Post the merger, all the assets and liabilities, including the long term bank loans of VSL, have been transferred to ESL. This Report does not constitute an offer of services. We also pioneered a globally unique rating service for Micro, Small and Medium Enterprises (MSMEs) and significantly extended the accessibility to rating services to a wider market. Electrosteel Castings (UK) Ltd, Ambrose Yard, Broombank Trading Estate, Broombank Road, Chesterfield, Derbyshire S41 9QJ As a result, certain business units of CRISIL may have information that is not available to other CRISIL business units. Products comply with the many International and European Standards for conveyance of potable drinking water, raw water and wastewater. Any shortfall in funding is expected to be covered by Vedanta, which has healthy liquidity. With a tradition of independence, analytical rigour and innovation, CRISIL sets the standards in the credit rating business. We rate the entire range of debt instruments, such as, bank loans, certificates of deposit, commercial paper, non-convertible / convertible / partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. Post the merger, all the assets and liabilities, including the long term bank loans of VSL, have been transferred to ESL. Download The Economic Times News App to get Daily Market Updates & Live Business News. DI Pipes Fittings & Special Other Products. Electrosteel Castings Limited (ECL) is a pioneer in the production of Ductile Iron Pipes in India, with a strong presence in over 70 countries across the globe. The delisting proposal was taken on record and approved, in the meeting of the board of directors held today, the company said in a BSE filing. For the avoidance of doubt, the term “Report” includes the information, ratings and other content forming part of the Report. Electrosteel has a debt of close to Rs 13,000 crore, this essentially means that the financial creditors will have to take a haircut of close to 60 percent. The Report should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).Ratings from CRISIL Rating are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities / instruments or to make any investment decisions. Inciting hatred against a certain community, How your focus on sustainability can actually increase in sales. ESL was incorporated in Ranchi, Jharkhand, India in December 2006. They Alloted ESL shares to Vedanta against VSL shares. Domestic demand for TMT bars to normalise by Oct: Electrosteel. CRISIL has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. While CRISIL has obtained information from sources it believes to be reliable, CRISIL does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its Reports. Internationally certified superior quality DI Pipes and Fittings. Shares of Srikalahasthi Pipes (SPL) and Electrosteel Castings (ECL) tanked up to 18 per cent on the BSE in the intra-day trade on Tuesday after their respective boards on Monday approved a draft scheme of amalgamation for the merger. NCLT Kolkata already approved Merger of Vedanta Star Limited with Electrosteel Steels Limited. The Group has successfully forayed into Steel Making with an Integrated Steel & DI Pipe Plant at Bokaro, commissioned in consultation with reputed international agencies. The board of Electrosteel Steels Monday approved the proposal to delist the company, according to a regulatory filing. Next, he worked with the Uttam Group, where he became the Director (Group Manufacturing). We are majority owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. The company has term loan obligation of Rs 184 crore in fiscal 2021. Explore Now Kolkata: Vedanta NSE 8.24 % Ltd has said its acquisition of Electrosteel Steels Ltd (ESL) has led to a turnaround in the company in a space of eight months. It was India's first Chinese technology-based greenfield integrated steel manufacturing facility near Bokaro, Jharkhand. Electrosteel are a leading manufacturer of Ductile Iron Pipes, Fittings, and Ancillary Pipeline Products supplying around the globe. From the effective date, VSL ceased to exist as an entity and all its assets, liabilities, debts, borrowings now stand transferred to the books of ESL. CRISIL has factored in strong support from ESL's parent, Vedanta, because of strong business and financial linkages. For details please refer to: https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.htmlCRISIL’s rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. The rating on short-term bank facility were reaffirmed at 'CRISIL A1+ '. what will happen for the share holders at present? We may use your contact information, such as your name, address, and email id to fulfil your request and service your account and to provide you with additional information from CRISIL.For further information on CRISIL’s privacy policy please visit www.crisil.com.DISCLAIMERThis disclaimer forms part of and applies to each credit rating report and/or credit rating rationale that we provide (each a “Report”). Merged entity to become country’s largest ductile iron pipe maker Hyderabad, October 5 The Board of Directors of Electrosteel Castings Ltd (ECL) and Srikalahasti Pipes Ltd … We pioneered the concept of credit rating in India in 1987. We have rated over 24,500 large and mid-scale corporates and financial institutions. After Merger the new entity will get new face and will rename as “Vedanta Steel Limited” or other name which approve by board. The outlook is based on CRISIL's rating outlook on Vedanta's debt instruments and bank facilities. Vedanta Ltd. on 4th Feb, 2020 said the National Company Law Tribunal, Kolkata Bench, has approved the scheme of amalgamation of its arm Vedanta Star Ltd. with Electrosteel Steels Ltd. Post the amalgamation becoming effective, Vedanta will directly hold 95.48% in ESL. Vedanta, through its wholly owned subsidiary Cairn India Holdings Ltd (CIHL), acquired slightly over 51% equity stake in glass substrate manufacturer AvanStrate Inc (ASI) in December 2017. It was India's first Chinese technology-based greenfield integrated steel manufacturing facility near Bokaro, Jharkhand. The company's utilisation level rose to the pre-pandemic level in June 2020. The oil and gas business has now been merged with Vedanta, and the group operates the zinc business through Hindustan Zinc Ltd (HZL) and Zinc International in South Africa and Namibia. Electrosteel Steels Ltd has setup 2.51 Million Ton Per ANNUM (MTPA) Greenfield Integrated Steel Plant near Siyaljori village in the Bokaro district of Jharkhand. Also, exports increased in the first quarter of fiscal 2021 and offset the decline in domestic demand during the lockdown. 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