India-based water transportation products provider Electrosteel Castings Ltd (ECL) will issue convertible warrants worth a total of around $25 million in cash in a privately negotiated transaction to Stemcor Metals Ltd (part of Stemcor) to fund their expansion plans.
The transaction is subject to shareholders' approval.
ECL is constructing a 1.3 million mt steel mill in Jharkhand for the production of TMT (thermo-mechanically treated) bars, wire rod and pipe, and expects to commence production around December 2009.
Following the conversion Stemcor will have a 3.5 percent equity stake in ECL.