Maithan Alloys Limited has announced a strategic acquisition of a 0.07% equity stake in Electrosteel Castings Ltd for a total value of ₹9.16 Crores. This transaction was completed on 18th September, 2024 and takes Maithan Alloys’ total holding in the company to 0.40%, comprising 2,447,145 shares. The acquisition was made through the stock exchange, as part of Maithan Alloys' broader investment strategy, aimed at reaping long-term benefits in the iron and steel industry.

Electrosteel Castings Ltd, founded in 1955, is a prominent player in the manufacturing and supply of Ductile Iron (DI) pipes, fittings, and other related products. It also produces pig iron, metallurgical coke, and ferro products, with its operations spread across five locations in India, including West Bengal, Tamil Nadu, and Andhra Pradesh. The company is also globally active, with a presence in countries like France, UK, USA, UAE, and Brazil.

This acquisition will not fall under the Related Party Transactions category, and Maithan Alloys Limited has clarified that it does not intend to acquire control over Electrosteel Castings Ltd. The purpose of the acquisition is purely for investment purposes, aligning with the company's goals of achieving both short-term and long-term gains in the iron and steel sector.

This disclosure has been made as per SEBI’s Master Circular and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), following the triggering of the threshold limit under Regulation 30.

Electrosteel Castings has reported a turnover of ₹6938 Crores and a profit after tax of ₹716 Crores as of March 31, 2024. The company caters extensively to the water infrastructure development industry, with its products playing a key role in infrastructure projects across the country. In addition to its Indian operations, Electrosteel has an established presence in international markets, supplying its products to countries like Germany, Algeria, and Spain.

For investors and traders, this acquisition signals Maithan Alloys’ confidence in the long-term value of Electrosteel’s products and services. Both companies are well-placed within the iron and steel sector, which has witnessed steady growth driven by infrastructure projects and increasing demand for high-quality steel products.

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