Incorporated on 20 Jan.'88, Stelco Strips has been promoted by Om Prakash Jindal, Bharat Bhushan Jindal and others. The company manufactures cold-rolled close-annealed (CRCA) steel strips of mild steel, medium and high-carbon steel. Its products are used to manufacture cycle and auto parts, cycle chains, hacksaw blades, industrial knives, agricultural implements etc.
In Jan.'94, the company came out with a public issue to part-finance its project to manufacture narrow width cold-rolled steel strips increasing the capacity from 6000 tpa to 16,000 tpa.
To consolidate its activities, the company set up a wider cold-rolled steel strips plant (cap. : 50,000 tpa) along with a continuous sheet galvanising line. The company has embarked upon ambitious plans for diversifying into the textile market by setting up a cotton spinning unit of 25,000 spindles.
The company set up wider width CRCA Strips plant with an installed capacity of 36000 MTPA at Doraha, Ludhiana. The project is first of its kind in the state of Punjab which was financed with a combination of external borrowings, mobilisation of internal accruals and further issue of share capital.
During 1998-99, the Company alloted 2,52,500 Equity Shares of Rs. 10/- each for cash at a premium of Rs. 20/- per share to the promoters on preferential basis to part finance the project cost of Wider Width CRCA Strips Plant being set-up at Doraha. To meet its working capital requirements of CRCA Strips Plant at Doraha,the company allotted Equity Shares of 7,50,000 of Rs.10/- each at a premium of Rs.1/- per share on perferential basis. It has also submitted the application for the above expansion project to Oriental Bank of Commerce.