In-depth Analysis of ESL Steel Limited's Unlisted Shares

Pioneer in integrated steel and Ductile Iron pipe projects, Electrosteel Steels Limited deals with the manufacturing of steel and iron pipes. The steel producer majorly operates in Bokaro, Jharkhand, India, and was established in 2006 established as a public limited company. Over the years, ESL has achieved excellence in different stages of steel production with world-class solutions and expertise from prestigious manufacturers. Apart from the latest tech, the company utilises synchronisation with the utmost ecological industry. The product range of ESL includes Pig Iron, Wire Rods, TMT Bars, Billets, and Ductile Iron Pipes.

Vedanta Limited obtained administrative control of the ESL via the corporate insolvency resolution process, which was established to identify and resolve the issue of non-performing assets in the Indian banking system. The company’s name was changed on September 26, 202o, from Electrosteel Steels Limited to ESL Steel Limited. Recently, the company has come up with a range of rebranded products, including V-DUCPIPE, V-XEGA, and V-WIPRO.

Business Performance of ESL Steel Limited

ESL produced the hottest metal ever (1355 MT, up 5% YoY) as well as the highest sellable quantity ever (1260 MT, up 6% YoY) in FY22. EBITDA margins have decreased by 20% year on year, because of significantly increasing iron ore costs and an exceptional increase in coking coal prices during the year. To minimise the cost of iron ore (the raw material required to create steel), the ESL bought two mines in Barbil, Odisha, namely the Nandidih Iron Ore Block (BICO) and the Nandidih Iron Ore & Manganese Block (FEEGRADE), following an auction procedure conducted by the Odisha government. This provides them with a capability for backward integration in the production of steel.

The global recession, the Russia-Ukraine war, the concentration on development initiatives, demand-supply pressures, and government expenditures and policies all had an influence on pricing in FY22. The business anticipates that steel demand will stay constant in 2022, with a dramatic reversal in pricing. Prices for coking coal and iron ore In the months of May and June, the government imposed export duties on items such as pig iron, TMT, and wire rod, and increased export duties on all grades of iron ore. In addition, the government has eliminated the tariff on coking coal. The elimination of import charges on coking coal and a rise in export levies on iron ore would reduce the cost of steel manufacturing. However, the implementation of steel export duties

ESL Steel Unlisted Share Valuation

According to ESL Steel’s yearly report FY 2021-22, total number of outstanding shares of the company is 1, 84, 90, 30, 224. Face value of ESL unlisted share is Rs 10 per equity share and lot size in 1000 shares. While current ESL share price in India is Rs 38 per equity share.

ESL Unlisted Share Financial Analysis of FY22

Company’s revenue surged from Rs. 4,899 Crores in FY21 to Rs 6799 Crores in FY22. However, the gross margin has reduced significantly from 45% to 32% in FY22 because of increasing iron ore prices and an exceptional hike in coking coal price for the last few years. Its profit before tax was at Rs.26 Crores in comparison to last year’s loss of Rs. 21 Crores. ESL unlisted shares demonstrated a margin contraction of 72% in the first half of FY23. ESL’s half yearly sealable production got up by 2% YoY besides decline in hot metal because of improvement in production. The company has generated a total revenue of Rs. 3,400 Crores in H1FY23 from Rs.2600 Crores in H1FY22. But margine pressure played a critical role in reducing the EBITDA from Rs. 295 Crores in H1FY22 to Rs. 82 Crore in H1FY23.

How Can ESL Unlisted Share Be Beneficial to Investors?

Retail investors can diversify their investment portfolio by investing in ESL Steel Limited unlisted shares. ESL Steel Limited’s historical performance and financial information for several fiscal years are available on Stockify. Our expert stock brokers closely monitor the fluctuation in the market and regularly update ESL unlisted share price based on current market conditions.

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Frequently Asked Questions

Q-1 Is trading in ESL unlisted shares legal in India?

Yes, you can easily buy ESL unlisted shares in India or sell them. You can trade these stocks at over-the-top counters through a reliable online platform like Stockify.

Q-2 Which is the best place to get the best ESL unlisted share price?

Stockify is one such platform where you will get the best ESL unlisted share price and an enhanced stock trading experience.

Q-3 What is the minimum ticket size to invest in ESL unlisted shares?

The minimum ticket size to invest in unlisted shares has dropped over the years because more and more people are investing pre-IPO or unlisted shares. Right now, the minimum ticket size for ESL Steel Ltd. is between Rs.30,000 to 50, 000.

Q-4 What is the lock-in period of ESL unlisted shares?

The new regulation, published by SEBI last year in August 2021, reduces the lock-in period from one year to six months. This was done in order to convince more investors to participate in pre-IPO firms and startups. ESL Steel Ltd.'s lock-in time varies based on the sort of investor you are:

Foreign Venture Capitalist – 6 months from the date of acquisition of ESL unlisted shares.

Other investors – 6 months from the day ESL unlisted shares are listed.

Q-5 How can I check updated ESL unlisted share price?

Stockify is one of the most reliable online platforms that update unlisted share prices of numerous companies. You can easily check the current ESL unlisted share price at Stockify.