India Steel Works Limited has raised Rs 19 Cr by selling 10% equity stake to Dubai-based ANC Holdings in an all-cash deal.
The company will use the funds to repay creditors and to fund the voluntary retirement scheme for workers at one of ISWL’s factories.
As part of the deal, ISWL will process material from ANC’s Dubai steel plant in ISWL’s factories located in Maharashtra.
Transaction Reference: ET
India Steel Works, listed on the Indian Stock Exchanges, is into manufacture and export of stainless steel long products.
The company had earlier been referred to the Corporate Debt Restructuring cell for its inability to repay its debt. The company currently has debt worth nearly Rs 70 Cr. It had a net loss of Rs 12 Cr the previous fiscal.
Post the deal, the promoter’s holding in ISW has come down to 48%, from the existing 55%.
ANC Holdings has interests in construction, education, food and hospitality and has been talking with different Indian companies.
ANC Holdings last month announced the strategic acquisition of a majority stake in Amusement Whitewater LLC (AWW), the regional leader in design, supply and execution of themed environments. AWW are the creators of The Lost Chambers, Atlantis, and the complete internal alpine theming of Ski Dubai.
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 18/08/10 |
India Steel Works - ANC Holdings |
M&A |
ANC Holdings LLC |
4.07 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 03/02/12 |
M&A |
Siddharth Holdings Private Limited |
Lloyds Steel Industries Limited |
38.65 |
Announced |
| 24/01/12 |
IPO / Offerings |
|
Great Eastern Energy Corporation Limited |
- |
Planned |
| 23/01/12 |
M&A |
Tata Power Company Limited |
MEC Coal |
- |
Planned |
| 16/12/11 |
M&A |
JSW Energy Limited |
South African Coal Mining |
- |
Completed |
Company |
| Name | Promoters | Office | Competitor | Website |
| India Steel Works Limited |
Harbanslal B Gupta & Family |
C 63 TTC, MIDC, TTC Area, Turbhe,Navi Mumbai - 400705 |
Ispat Industries Limited |
www.indiasteel.in |
