ESL Steel Unlisted Share
ESL Steel Ltd (Electrosteel Steels Ltd.)
INE481K01021
Listing Status: Delisted
Was listed at NSE/BSE
About ESL Steel Unlisted Share
Overview of ESL Steel Unlisted Share
The Global Steel Industry
Like many other industries, the global steel industry witnessed a year of two halves in CY 2020. A sharp decline in both steel demand and production in the first half, and a sharper-than-expected recovery in the second half. The short-term disruptions, however, inflicted significant pain on economies where the manufacturing sector was already under enormous stress. The recovery of steel-consuming industries such as automobiles has been faster than expected, and as a result, CY 2021 started with a firm steel demand and market prices. As economies around the world build back, infrastructure will be a key enabler for growth.
Global steel production in CY 2020 marginally dropped by 0.9% to 1,864 MnT from 1,880 MnT in CY 2019 (Source: World Steel Association). Steel demand fell by 0.2% to 1,771.8 MnT from 1,775 MnT in CY 2019.
Indian Steel Industry
A dynamic external environment, and enabling pricing scenario, and the release of pent-up demand majorly defined FY 2020-21 for the Indian steel industry. While the initial quarter of the fiscal proved to be an unprecedented slowdown with consecutive lockdowns, the rest of the year witnessed a high-powered demand revival in consumption industries such as automobiles. Demand for appliances improved due to the large-scale shift towards work-from-home, and construction activity picked up with government expenditure. This mirrored the global scenario, as demand picked up after liquidity was pumped into the economy together with a flurry of infrastructure project announcements.
Production Facility of ESL Steel Ltd
ESL Steel’s production unit primarily consists of Sinter Plants, Coke Oven, Blast Furnaces, Oxygen Plant, Basic Oxygen Furnaces, Billet Caster, Wire Rod Mill, Bar Mill, Ductile Iron Pipes Plant and a Power Plant with a total production capacity of 2.5 mtpa.
Product Portfolio & Brands ESL Steel Ltd
ESL Steel's product range includes Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes. ESL Steel has recently introduced its rebranded product range in the market under three new brands, V-DUCPIPE for Ductile Iron Pipes, V-XEGA for TMT Bars, and V-WIRRO for Wire Rods.
Insights of ESL Steel Unlisted Share
Altius Decode's
In FY21, ESL Steel Ltd achieved the lowest ever cost during the year since its acquisition resulting in a higher EBITDA margin.
EBITDA margin of ESL Steel increased 28% y-o-y compared to the INR 5,514 per tonne in FY20 to INR 7,070 per tonne in FY21.
Reasons of increase in EBITDA Margins
Average sales realization improved by 3% y-o-y from INR 35,109 per tonne in FY2019 to INR 36,197 per tonne in FY2021
Cost Reductions by 1.5% from INR 29,563 per tonne to INR 29,127 per tonne.
ESL Steel unlisted share price jumped from Rs 32/sh in April 2021 to Rs 65/sh in July 2021.
Production Capacity & IPO Updates of ESL Steel Limited
ESL Steel’s production capacity also increased to 1.2 mtpa (FY’19) vs. 2.5 mtpa, according to the current design capacity.
In all likelihood, Vedanta Group led by Mr. Anil Agarwal has ESL Steel IPO plans in mind and to get it listed back on the bourses after the turnaround has happened.
Sauvick Mazumdar, CEO, of Vedanta Iron & Steel elaborated on the expansion plan of ESL Steel Limited for the medium term. He went on to disclose that ESL Steel is ready with the blueprint for taking the capacity further to 5 mtpa. Vedanta & ESL’s management believes the further capacity expansion will require another Rs 8,000-9,000 crore.
Peer Comparision Of ESL Steel Limited with major players like JSW Steel Ltd & Tata Steel Ltd
ESL Steel's share price is trading at very attractive valuations, PE at 3.32x, Price to Sales at a meagre 0.18x & Price to Book Value of ESL Steel Ltd stands at jus 1.46x.
Financial Charts of ESL Steel Unlisted Share
Balance Sheet of ESL Steel Unlisted Share
Profit and Loss of ESL Steel Unlisted Share
Ancillary of ESL Steel Unlisted Share
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of ESL Steel Unlisted Share
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How to buy ESL Steel Ltd.?
Below are three ways through which you can purchase ESL Steel Ltd.:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy ESL Steel Ltd., please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell ESL Steel Ltd.?
Below are three ways through which you can sell ESL Steel Ltd.:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell ESL Steel Ltd., please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of ESL Steel Ltd.?
We provide a two way quote on all the shares we deal in. Your buy price for ESL Steel Ltd. is ₹52 and your sell price for ESL Steel Ltd. is ₹40. The price is based on our estimates and market conditions.
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What is the lock-in period of ESL Steel Ltd.?
The lock-in period for ESL Steel Ltd. varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of ESL Steel Ltd.
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of ESL Steel Ltd.
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the ESL Steel Ltd. price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of ESL Steel Ltd.. The price is also determined from the most recent funding round for ESL Steel Ltd.. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of ESL Steel Ltd.?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of ESL Steel Ltd. with us kindly click here.
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What are the financials of ESL Steel Ltd.?
The financials of ESL Steel Ltd. which includes the P/L of ESL Steel Ltd. and the Balance Sheet of ESL Steel Ltd. is in the financials section (Click on link).
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Where can I find the annual report of ESL Steel Ltd.?
The annual report of ESL Steel Ltd. is available in the annual report section (Click on link).
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Is buying ESL Steel Ltd. legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on ESL Steel Ltd.?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on ESL Steel Ltd. and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on ESL Steel Ltd. once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source ESL Steel Ltd.?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying ESL Steel Ltd. from its platform?
Altius Investech stands at being India's fastest growing and leading marketplace for buying and selling unlisted shares. We believe in enabling access to alternative sources of investments at lower entry barriers to private equity investments.
With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
For ESOP Shareholder and existing Investors, we assist them to liquidate their shares even if they are not publicly traded by creating a platform where we find the right buyers and sellers for the best prices.
Altius Investech have been featured in top media news outlets like Economic Times, Financial Express, Money control. Check out about us on these - leading publications (Click on link) Our journey over these years has not just been about numbers; it's been about building trust and reliability.
We at Altius Investech are dedicated to upholding the greatest levels of ethics and transparency, making sure that your investment experience is not only profitable but also safe and reliable.
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