Wednesday, December 23, 2009

Gallantt Ispat filed a DRHP with SEBI for Fixed price issue

Gallantt Ispat Limited is one of the growing companies in Uttar Pradesh engaged in the manufacturing and marketing of Sponge Iron, Mild steel billets, Re-Rolled products (TMT bars and Mild Steel Structural) and wheat flour products.

Gallantt Ispat was incorporated in February 2005 at Kolkata and is promoted by Mr. Chandra Prakash Agrawal, Mr. Prem Prakash Agarwal, Mr. Nitin M Kandoi, M/s Chandra Prakash Agarwal & Sons HUF and M/s Gallantt Metal Ltd.

Gallantt has planned an initial public offering (IPO) of 81,00,000 equity shares of Rs 10 each for cash at a price of Rs 50 per equity share aggregating to Rs 40.5 crore. The company has filed a DRHP (draft red herring prospectus) with SEBI (Securities & Exchange Board of India) on December 18, 2009.

Gallantt Ispat intends to spend the issue proceeds for to part finance the integrated steel plant consisting of the following modules.
1. Sponge Iron Plant with a capacity of 99,000 MTPA
2. M.S Billets with a capacity of 1,62,380 MTPA
3. Re-Rolled Products with a capacity of 1,67,400 MTPA
4. Captive Power Plant with a generating capacity of 16 MW
Also to part finance the Flour Mill with a capacity of 1,80,000 MTPA and Listing of securities on Stock Exchanges.

For the year ended March 31, 2009, GGallantt has reported net loss of Rs 12.60 lakh on total income of Rs 3.25 crore. For the period of five months from April-August 2009, it has posted net loss of Rs 1.3 crore on total income of Rs 41.29 crore.

Anand Rathi Advisors Ltd is the book running lead manager of the issue and Niche Technologies Private Limited is the registrar.

For more information about Gallantt Ispat IPO Prospectus please visit: