Sesa Goa to raise up to Rs 6,000 crore

Shareholders’ meeting on October 20.

Iron ore exporter Sesa Goa said on Friday it would raise Rs 6,000 crore by issuing various securities in domestic and overseas markets for funding its business plans.

The Vedanta Group company had, on Thursday, announced a plan of raising $500 million (over Rs 2,400 crore) through Foreign Currency Convertible Bonds. Today, it said it was also considering Qualified Institutional Placements (QIPs), global depository receipts, warrants or any other securities, including the FCCBs. It plans a shareholders’ meet on October 20 to take approval for all its fund raising plans.

Regarding the $500 million FCCB issue, the company said it had fixed the conversion price of Rs 346.88. The proceeds it plans to use for expanding mining operations “through organic and inorganic routes”. The board has also approved a capital expenditure plan of Rs 605 crore for increasing the capacity of its pig iron plant, along with expansion of the met coke plant and setting up a waste heat recovery power plant, it informed the stock exchanges.

The stock was down by 5.6 per cent to Rs 256.8 a share on the Bombay Stock Exchange on Friday. The Sensex, the benchmark index of the exchange, was down by 0.53 per cent to 16,693.