Lloyds Metals board Decides to use QIP to raise an amount of 5000cr

Lloyds Metals board Decides to use QIP to raise an amount of Rs.5000cr

The board of Lloyds Metals and Energy Ltd. has said in an exchange filing that, it has recently approves raising up to 5,000 crore through a Qualified Institutional Placement (QIP). QIP is a fund-raising method through which a company raising funds by issuing shares to eligible institutional bidders.

The company said in a statement that, Lloyds Metals will lift these funds in one or more tranches. The statement of the company says, "The Board Members in their meeting have also discussed that fund raising should be done in an organic and the most efficient way taking into cognizance that the Promoter holding should not be diluted to a greater extent."

During the quarter of the December, the promoters of the Lloyds Metals were having 65.7% stake in the company. This tool of fundraising is meant for shareholding approval which will be done via special resolution through a postal ballot with remote e-voting.

Managing Director of Lloyds Metals, Rajesh Gupta stated that, the company targeting to forward integration from the ore of iron to steel. He highlighted that, the company deals with steel production which is expected to grow 4.2 million tonnes from the two locations by 2027–28.

He elucidated saying,“We are doing a pipeline from the mine to the Gadchiroli as well as the Chandrapur plant, so that makes it greener as well as a cost-efficient scenario over the long term, which would make it India’s one of the longest pipelines.”

In stock market, the shares of Lloyds Metals are trading 2.2% higher at 589.8. The stock has gone up only 4% in the last 12 months.