This fundraising, which will be done over the next 910 months, may also include family offices, and will focus on firms in the South Asia region, they said. For its fundraising, the company is looking at a valuation of 10 -11 times its earnings before interest, tax, depreciation and amortization (Ebitda).
The steel maker, which was formed in 2020 through the acquisition of Uttam Galva Metallics and Uttam Value Steel, is majorly owned by Nithia Capital.
“We do not comment on market rumours,” a spokesperson for Nithia Capital said in response to an email query sent by ET.
In December, Evonith will commission a 300,000-tonne ductile iron pipeline. Over the next three years, the company is aiming to expand its finished steel production capacity to 3.5 million tonnes (mt) from the current 1.4 mt, supported by a capital expenditure of around ₹6,000 crore. Evonith eventually plans to scale this up to 6 mt, aided by acquisitions.
“The company is looking for assets with a capacity of less than 2 mt, which it can turn around and ramp up to 2 mt,” one of the sources said. Evonith is scouting for assets in Jharkhand, Odisha and Maharashtra, where it can stay close to either raw material sources or key markets, the person added.Jharkhand-based ESL Steel, owned by billionaire Anil Agarwal, is not among the assets that the company is looking to acquire, one of the sources said.In 2024, the company had raised ₹1,700 crore from a clutch of lenders, including Standard Chartered Bank, JP Morgan, IndusInd Bank and Catholic Syrian Bank, to repay its existing creditors. These included some Indian banks and AB Carval.
India is currently the second-largest producer of steel in the world and has an annual production capacity of close to 200 mt.