Electrosteel Castings to raise additional USD 25 million for CAPEX
Electrosteel Castings Limited is planning to raise close to USD 25 million through the private placement route for its INR 337 crore CAPEX plan, in addition to INR 75 crore it has planned to raise through private placement with the UK based PGS Invest Ltd.
Mr Umang Kejriwal MD of Electrosteel Castings Limited said that this could be through an issue of equity shares and warrants to a non promoter company based in West Asia and the same procedure may be adopted for the next round of USD 25 million, which may complete the fund requirements of Electrosteel Castings Limited for its expansion activities.
He added that shareholders' approval will be sought on December 15th 2007 for the fund raising proposals and the entire process is expected to be completed by end of December 2007.
Mr Kejriwal said that "ECL needs to have more products in order to compete effectively globally, as a lowest cost producer of ductile iron pipes. Besides being a major player in DI pipes, ECL is also entering manufacture of construction steel through a 1.5 million tonne Greenfield steel project being taken up by its associate company Electrosteel Integrated Limited in Jharkhand."
He added that financial closure for the steel project, scheduled for completion by 2008-09, has already been achieved and it has been allotted an iron ore mine in Kodolibad in Jharkhand and the required infrastructure to exploit the deposits are now being developed. He informed that "Electrosteel Castings Limited has taken up a coal mining project in Jharkhand, for which the Parbatpur coal block in the Jharia coal field has been allocated. It is also setting up a sintering plant at the Khardah site with a capacity of 850 tonnes per day for increasing the liquid metal availability from the blast furnace at an estimated investment of INR 66 crore."
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