The company has allotted 1.75 crore equity shares to qualified institutional investors, the shares were priced at Rs 696 per share, resulting in an issue size of approximately Rs 1,218 crore.
The QIP garnered interest from a diverse range of investors, including long-only funds, mutual funds, insurance companies, and other key stakeholders.
The QIP witnessed participation from various institutional investors, with the allottees receiving more than 5% of the total issue size.
Authum Investment and Infrastructure emerged as the largest allottee, securing a major 32.29% allocation. Following Quant Mutual Fund - Quant Mid Cap Fund received allocation of 19.89%.
Shamyak Investment Private received allocation of 5.71%, Quant Mutual Fund - Quant Large & Mid Cap Fund and Santosh Industries received allocation of 9.82% and 5.71%. Timf Holdings received allocation of 10.57%.
The proceeds from the QIP will be utilised for setting up a 4 MTPA pellet plant at Konsari, Maharashtra along with an iron ore and grinding unit, primarily for the production of blast furnace and DRI grade pellets, in line with the company's business strategies and growth plans to achieve forward integration.
Meanwhile, the company’s board at their meeting held on 4 July 2024, have also decided to issue and allot 4.00 crore convertible warrants of the company on a preferential basis at a price of Rs 740.00 each (to be converted into equity shares) (Preferential Issue) of which 1.50 crore convertible warrants are proposed to be issued to the promoters and balance to others / non-promoters of the company, towards the raising of additional capital.
Proceeds of the said issue will be used for another 4 Million MT Pellet Plant, taking a total to 8 Million MT also, additional DRI and power capacities at Chandrapur will be setup with these proceeds
Riyaz Shaikh, CFO of LMEL, commented, "This fundraise marks an exceptional milestone in our company’s history. It will bolster our capital structure even further, enhance our financial flexibility, and enable us to accelerate our growth plans. This fundraising is a testament to the confidence investors have in LMEL’s distinctive position and future prospects in the Indian iron ore and steel sector.”
Rajesh Gupta, managing director of LMEL, added, “The response from investors is a strong endorsement of our company’s potential and operational robustness. We are committed to leveraging this support to navigate the changing landscape of steelmaking in India and to maintain our strong operational and financial grip. Our efforts are underway to put Gadchiroli & Chandrapur as major steel district on India's map.”
Lloyds Metals and Energy is a metals and mining company engaged in mining iron ore, manufacturing sponge iron and generating power.
The company’s consolidated net profit rose 2.89% to Rs 276.8 crore on 74.43% jump in income from operations to Rs 1,562.4 crore in Q4 FY24 over Q4 FY23.
The counter shed 0.59% to Rs 755 on the BSE.