Sesa Goa to raise Rs 6,000 cr for capex, acquisitions

Domestic mining firm Sesa Goa today said it will raise funds to the tune of Rs 6,000 crore through the issue of various securities in domestic as well as overseas markets.     

The company plans to raise the said amount through the issue of Foreign Currency Convertible Bonds (FCCBs), qualified institutional placements, global depository receipts, warrants or any other securities.

A shareholders meeting would be held on October 20, to consider the fund raising of up to Rs 6,000 crore and an FCCBs issue of $500 million, Sesa Goa informed the Bombay Stock Exchange.     

Regarding the $500 million (over Rs 2,400 crore) FCCB issue, the company said it has fixed the conversion price of its FCCBs at Rs 346.88 a piece.     

The proceeds from the FCCB offering would be used to expand the mining operations and to further develop its pig iron and metallurgical coke operations.     

The proceeds would be used in accordance with the external commercial borrowing regulations of the Reserve Bank of India, Sesa Goa said, adding that "the proceeds are intended to be used for financing the growth plans, including a rise in the mining capacity through organic and inorganic routes."     

The board has also approved a capital expenditure plan of Rs 605 crore ($125 million) for increasing the capacity of its Pig Iron plant along with expansion of Met Coke Plant and setting up a Waste Heat Recovery Power Plant.