ESL Steel Limited, a part of the Vedanta Group, is a leading manufacturer of high-quality steel products in India. The company specializes in producing pig iron, billets, TMT bars, wire rods, and ductile iron pipes, catering to various industrial and infrastructural needs.
| Company Name | ESL Electro Steel Limited |
|---|---|
| Promoter | Anil Agarwal |
| Est. Year | 2006 |
| Industry | Manufacturing |
| ISIN No | INE481K01021 |
| Face Value | ₹10 per share |
| Website Link | Visit ESL Steel Website ↗ |
Under Vedanta's management, ESL Steel has witnessed significant financial growth, increasing its production capacity and improving operational efficiencies. The company's focus on backward integration and cost optimization has resulted in consistent profitability.
With India's rising demand for steel in construction and infrastructure, ESL Steel's Pre-IPO shares present an attractive opportunity for investors. The company's strong backing by Vedanta and its future expansion plans make it a compelling investment.
Growing steel demand, government infrastructure projects, and cost-efficient production techniques.
ESL Steel is expanding its product portfolio and adopting sustainable production practices to align with the global push for eco-friendly manufacturing.
Vedanta's ESL Steel is advancing its capacity expansion to 3.5 million tonnes per annum, aiming to enhance production efficiency and meet growing steel demand. This initiative aligns with Vedanta's broader strategy to restructure its operations and strengthen its position in the steel industry.
Vedanta Ltd. has reportedly put the sale of its steel business, ESL Steel, on hold following a successful $1 billion share placement that eased debt pressures. Environmental and regulatory concerns have also contributed to the decision, though the company remains open to revisiting the sale under favorable conditions.
ESL Steel Limited reported a net debt of ₹1,524 crore as of March 31, 2024, reflecting financial pressures from its ongoing expansion and restructuring initiatives. Despite stable gross debt levels, the company's net leverage ratio increased to approximately 14 times EBITDA, up from around 10 times in the previous fiscal year, indicating heightened financial strain.
