Electrosteel Steels has received its shareholders’ approval for takeover of the company by lenders under a strategic debt restructuring (SDR). Accordingly, the company’s Rs 2,507 crore debt will be converted into 51 per cent equity.
In October, banks had approved conversion of the debt into 250 crore shares of face value Rs 10 each, to be issued at par. Earlier in July, a group of 31 lenders had approved restructuring the company’s debt. The steelmaker has been undergoing corporate debt restructuring since 2013 and owes around Rs 6,000 crore to various banks.
Electrosteel Steels is an India-based company engaged in the manufacture of steel. The Company’s products include pig iron, billets, thermo mechanically treated (TMT) bars, wire rods and ductile iron pipes. It consists of a sinter plant, pellet plant, coke oven, blast furnace, basic oxygen furnace, billet caster, wire rod mill, bar mill and power plant.
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