Bhushan Steel to seek shareholders nod for $1 bn fund raising

Company has not specified when it will be going for fund raising and where the money will be used

Bhushan Steel today said it will seek shareholders nod to raise up to $1 billion (over Rs 5,400 crore) through issue of fresh securities.

"...The directors of the company passed resolutions by circulation as on December 25, 2012, inter-alia recommended for approval of shareholders further issue of securities not exceeding $1,000,000,000 through the process of postal ballot," the company said in a filing to the Bombay Stock Exchange (BSE).

It, however, did not specify when the company will be going for the fund raising and where the money will be used.

The company, which mainly produces secondary steel like cold-rolled coils, galvanised coils, colour-coated coils, has a production capacity of 2.5 million tonnes per annum from its three manufacturing facilities in Uttar Pradesh, Maharashtra and Odisha.

The company is also expanding its capacity further by a new three million tonnes per annum plant in Odisha.

As on September 30, the company had long term borrowings of Rs 19,584.71 crore and short term borrowings of Rs 4,064.54 crore.

During the first half of the current fiscal, Bhushan Steel has reported a net profit of Rs 407.48 crore and net sales of Rs 5,395.55 crore.

Shares of the company closed today at Rs 464.10 apiece on the BSE, up 1.46% from their previous close.