Ajay Piramal-led Piramal Enterprises and the Renaissance Group, an offshoot of the Dalmia Group, are reportedly jointly purchasing a 51% stake in Electrosteel Steels. While Piramal Enterprises is expected to invest Rs 1,400 crore in Electosteel Steels through its private equity arm Piramal Capital, the Renaissance Group will manage the operations.
Electrosteel Steel’s gross debt at the end of March 2016 was Rs 8,808 crore. The company reported a net loss of Rs 326 crore on the back of Rs 2,504 crore in revenues in FY16 with interest expenses rising to Rs 525 crore.
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.
