Electrosteel Castings Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 15th 2009 has approved composite QIP issue for an amount up to INR 6000 million.

The composite QIP issue consists of issue of Equity Shares and Non Convertible Debentures with warrants. This two pronged strategy would enable the Company to derive maximum value from the fund raising process. The Equity issuance is expected to be of about INR 1000 to INR 1500 million and the NCDs size would be of about INR 2000 million.

The NCDs shall also have the option to subscribe for the convertible warrants into Equity Shares for an amount up to INR 2000 million. The warrant holder shall have an option to convert the same into Equity Shares between a period of 3 to 5 years. The issue price or Equity Shares and warrant would be determined in consultation with the Merchant banker based on the SEBI regulations.

The Company would now seek the approval of the Shareholders through postal ballot for the issue of above securities. The Company would take appropriate follow up action on receipt of approval from the Shareholders.