Steel City Securities appoints Strategic Capital as merchant bankers

Vizag-based Steel City Securities Limited (SCSL), which has trading membership in NSE and BSE, and the National Commodity & Derivatives Exchange Limited, has appointed Mumbai-based Strategic Capital Corporation (SCC) as merchant bankers for its forthcoming public issue.

"SCC will submit offer documents to the Securities and Exchange Board of India (Sebi) before June 10 on behalf of SCSL, and we may go for the public issue in the first week of July," G Raja Gopal Reddy, executive director of Steel City Securities Limited, told Business Standard.

SCSL achieved a trading turnover of about Rs 22,218 crore during last fiscal and its net profits were Rs 2.6 crore. In the current year, the company expects a trading turnover of Rs 35,000.

"Our issue size will be around Rs 60 crore and after the public issue, SCSL's total shareholding will come down to 55-60 per cent. The company will use the public issue funds for setting up 100 more branches across the country," he said.

SCSL currently has 144 branches across the country, most of which are in Andhra Pradesh.