Loha Ispaat issue opens on Tuesday

Loha Ispaat Limited, a company with organised Independent Steel Service Centers, having an existing client base of over 500 customers across India, proposes to enter the capital markets on 11th March, 2014, with a public issue of 26,705,476 equity shares of Rs 10 each through 100% book building process.

The price band has been fixed at Rs 77 to Rs 80 per equity share of Rs 10 each and the issue closes on 20th March. The Issue will constitute 26.44per cent of the post Issue paid-up equity share capital of the company.

The equity shares are proposed to be listed on the BSE and NSE. The company proposes to utilise the net proceeds of the issue to meet its increasing requirement of working capital. It procures HR Coils, CR Coils in large quantities from major suppliers and upon receiving orders from customers, it process the steel by slitting, shearing and gas cutting as per requirement and dispatch the finished product to the customer.

The lead time for procuringsteel is high and also in order to ensure readily available customised productalong with a low lead time for customers, it needs to stock different grades and dimensions of steel to meet customers' varied need.

Further, it isrequired to provide sufficient credit period to customers resulting in highreceivables. Loha Ispaat serves a well-diversified base of customers across industries like automobile, bearing, fabrication, packaging, general engineering, pipe manufacturing, white goods, infrastructure, home appliances etc. Currently it operates from two locations in Western Maharashtra, i.e. at Khopoli and Taloja, both of which are within a range of 100 kms from Mumbai.