Gyscoal Alloys Limited has informed the Exchange about Investor Presentation
Rights Issue of the GAL:
The Company has launched its Right Issue (“the Issue”) of 17,41,03,116 fully Paid‐Up Equity Shares of Face Value of ₹ 1 Each for Cash at a price of ₹2.75 each including securities premium of ₹1.75 per rights equity share, aggregating to 4787.84 lakhs on a rights basis to the existing Equity Shareholders of the Company as in the ratio of 110 Rights Equity Share(s) for every 100 fully Paid‐up Equity Share(s) held by the existing equity shareholders on the Record date, that is on Friday, December 23, 2022. The issue price for the Rights Equity Shares was ₹ 2.75 which is 2.75 times the face value of the equity shares.
The issue was listed on both the Stock Exchanges i.e. on Bombay Stock Exchanges (BSE) and National Stock Exchange (NSE). It was started on Monday, January 02, 2023 and closed on Thursday, January 12, 2023.
THE ISSUE GET “OVERSUBSCRIBED” AND HEARTY THANKS TO ALL THE INVESTORS TO KEEPING FAITH IN YOUR COMPANY AND WILL TRY TO GIVE NEW HEIGHT TO COMPANY.
About the Company:
GYSCOAL ALLOYS LIMITED (GAL) the Stainless Steel & Mild Steel Manufacturer was established in the late '90s. From iron-ore & stainless scrap to manufacturing diverse structural products in Stainless Steel and Mild Steel, Gyscoal has come a long way. The group has achieved for itself a pre-eminent position in the value-added product segment of the Indian steel industry. Gyscoal started with trading of metals and later went on to manufacturing mild steel products like CTD Bars and TMT Bars in the same year. Over a period, the company has acquired good deal of expertise with steel and hence have diversified their manufacturing activities in stainless steel to a large extent.
Growth and Prospect with current position:
BSE & NSE Listed, Gyscoal Alloys Limited (GAL),an ISO 9001:2015 Certified Company engaged into manufacture of different grades of Stainless Steel products including Equal angle bars, bright and black bars, flats, ingots etc, ranging between 200 series to 400 series which announced a rights issue of shares in ratio of 110 shares for every 100 shares held at price of Rs.2.75 per share.
According to Mr. Viral Shah – Chief Executive Officer of the Company and past Chairman and Managing Director of the Company, Gyscoal has been an ardent entrepreneur in this growing industry of stain-less and mild steel and has acquired new skills & brought in new ultra modern state technologies to give its patronage better products. With measured & Strategic manufacturing process, Gyscoal plants deliver international quality products to the loyal clientele.
Further, Gyscoal is strong fundamentals and a Debt Free company. The company expects to posts Revenues of Rs. 495.75 crore for 2022-23 which will go up substantially to Rs. 694.05 cr in 2023-24.The company has projected net profits at attractive levels of Rs.70.33 crore and Rs. 75.68 crore respectively.
EXPANSION:
The Company plans to set up a TMT plant as well as Solar Power Plant which will reduce the cost of electricity consumed and will increase the profitability. Also power generation would help it to go eco-friendly.
FOCUS ON EXPORTS:
Company is already exporting to various countries in AFRICA, SOUTH AMERICA, EUROPE & ASIA ,whereby its profitability is expected to increase. It plans to expand with its client base and focus on new clients and increase its presence in the foreign export markets.
Gyscoal has been a consistent supplier to all major Global markets and enjoys a high degree of acceptability from all key export customers, due to its consistent superior quality and high degree of reliability.
The company can easily achieve the projected levels of production and sales with major sales coming from Exports, which will be at least 60% to 70% of the total sales. With shorter working capital cycles in the industry, Gyscoal can easily rotate its working capital for more than 8 to 10 times a year which will ensure high level of profitability and Return on Investment. With these positive developments, Gyscoal is all poised to grow on a fast pace.
According to latest analysis by Steel Mint and other leading Steel Trade publications, the steel prices will see upward movement due to increased Global Demand and higher domestic consumption in 2023 - 2024 as major infrastructure projects are progressing at a rapid pace. Besides, the Ukraine War also reduced the steel production in the major steel plants in Europe, opening further market to Indian steel producers and exporters like Gyscoal Alloys Limited Infect, due to the removal of "Export Duty" by the Government of India; manufacturers like Gyscoal Alloys Limited are poised to increase their market reach among customers in India and abroad. It is making special inroad in the Gulf and MENA region as it offers excellent export environment and better realization of the prices.
Gyscoal is a "Debt Free" company with an asset base of over 110 crores. Besides, the management proposes to add another 100000 MT capacities in its melting division and similar capacities in its rolling section too along with adding systems and manpower.
ABOUT THE RIGHTS ISSUE:
Issue size of 17,41,03,116 equity shares of Re. 1 each at a price of Rs. 2.75 per equity share (including premium of Rs. 1.75 per equity share) aggregating to an amount of Rs. 47.87 crores
Rights Issue is at a ratio of 110 equity shares for every existing equity shares 100 shares
THE RIGHTS ISSUE PROCEEDS WILL BE USED FOR:
Payment of the OTS settlement amount of Rs. 1750 lakhs
Repayment or prepayment of unsecured loan of Rs. 1950 lakhs
General Corporate purpose – Rs. 1027.84 lakhs
Issue expenses – Rs. 60.00 lakhs
BENEFITS OF RIGHTS ISSUE TO THE COMPANY:
Post Rights Issue (assuming full subscription) Company’s borrowing will reduce from Rs. 7909.34 lakhs (as on March 31, 2022) to Rs. 4209.34 lakhs (all these loans are interest free loan from related parties)
Net worth of the company will become positive Rs. 1641.82 lakhs.
PERFORMANCE OF THE COMPANY IN THE Q3 2023:
The Company registered turnover of Rs. 1,539.96 lakhs in Q3FY23. This is the highest quarterly revenue from operations reported by the company. The total turnover of Rs. 1,921.18 Lakhs for 9MFY23 as compared to 1,663.29 last year.
Particulars
Q3
Q2
Revenue from Operation
1539.96
324.85
Revenue from Operation (%)
18.39%
51.14%
Net Profit After Tax
220.88
98.14
Net Profit Ratio (%)
14.34%
30.21%
Earning Per Shares (EPS)
0.14
0.06
1800
1600 1400
1200
1000 800
600 400
200 0
Financials
1539.96
1681.18
324.85
Revenue from Operation
612.27
211.59
78.83
220.88
98.14
Total Revenue
Net Profit Before Tax Net Profit After Tax
Q3 2023
Q2 2023
PERFORMANCE OF THE COMPANY FOR THE Q3‐ 2023 IN TERMS OF RATIO:
Particulars
Current Ratio
Net Profit Ratio
Return on Capital Employed
Return on Investment
Ratio
133.74%
14.34%
4.46%
1.12%