Electrosteel Steel Limited Unlisted Shares (ESL Steel Ltd) | Latest Share Price & Updates

Buy

₹ 33

Sell

₹ 43

Fairly Valued

Company Overview

Electrosteel Steel Limited (ESL Steel Ltd) was incorporated in year 1955 at Kolkata. ESL Steel Ltd is engaged in the manufacture and supply of Billets, TMT Bars, Wire Rods and Ductile Iron(DI) Pipes and also deals in Pig Iron and Iron and Steel Scrap products generated while manufacturing these products. It also produces Metallurgical Coke, Sinter and Power for captive consumption. The Company caters to the needs of construction, automobile, industrial machinery and equipment and water Infrastructure development.

Electrosteel Steels Ltd has set up 2.51 Million Ton Per Annum (MTPA) Greenfield Integrated Steel Plant near Siyaljori village, in the Bokaro district of Jharkhand.

The Company’s shares were listed on the National Stock Exchange of India Limited and BSE Limited till October 29, 2018. Currently, the company is a subsidiary of Vedanta Star Limited which is a wholly owned subsidiary of Vedanta Limited.

SymbolElectrosteel Steels Ltd.
Face Value (₹):10
ISIN:INE481K01021
Demat Status:NSDL & CDSL
Lot Size:30 Shares

Board of Directors

NameDesignation Profile
Mr. Prasun Kumar MukherjeeIndependent DirectorNA Final 1
Mr. Mahendra Singh MehtaIndependent DirectorNA Final 1
Ms. Poovannan SumathiDirectorNA Final 1
Mr. Navnath Laxman VhatteWhole Time DirectorNA Final 1

Key Highlights

  • Leading Indian manufacturer and supplier of steel products.
  • Backward integrated business model having iron ore mines in Orissa.
  • ESL Steel shares are currently fairly valued for investors to step in.
  • Backed by financially strong: Vedanta Group.

Ratio

RatioFY22FY21
Operating Margin5%7%
Net Profit Margin-1%56%
Return on Equity-2%44%
Debt-Equity0.430.50
Current Ratio1.001.46
Dividend Payout0%0%

Financial Highlights

Particulars2021-222020-212019-202018-192017-18
Total Income (₹ Crores) 68004899448150073744
PAT (₹ Crores) -952732-2211876139
Diluted EPS -0.5114.78-0.125.37-25.48
Book Value per Share (₹) 33.1433.6618.8918.47-27.84
Equity (₹ Crores) 6128622434933623-6708

Financial Charts

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Historical Chart

Shareholding Pattern

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Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
ESL Steel Limited8506-1%4%-2%0.43-90.201.3933.14
BEEKAY STEEL Industries Ltd79912%25%22%0.394.991.12370.36
Rudra Global Infra Products Ltd2462%18%11%1.690.001.0431.19

Media Updates

“NCL Gives approval to Vedanta VSL merger with Electrosteel Steel Ltd”

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 had acquired ESL, after its resolution plan was approved by National Company Law Tribunal, Kolkata bench, through its wholly-owned subsidiary VSL, the company said in a regulatory filing to the BSE.

The acquisition of ESL fits into Vedanta’s strategy of forward integration; complementing the existing iron ore set-up as well as mines in
Jharkhand. The business has seen a complete turnaround since its takeover with the combination of right people, higher volumes and better cost
control leading to a visible positive change. This positions ESL to become a significant player in the Indian Steel Sector.

Frequently Asked Questions

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid. 

The procedure to buy the ESL Steel unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. 

When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.  

The ESL Steel shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for ESL Steel Ltd unlisted shares, please visit the stock page on our website: www.delistedstocks.in  

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your ESL Steel unlisted shares. 

But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds will be released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares. 

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. 

If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell ESL Steel unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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