Bellary Steel & Alloys has been granted approval to bring in foreign equity worth $39 million amounting to 35 per cent of its paid up capital by four foreign promoters.
The foreign promoters Shougang International of China, Visa of the UK, CMR Holdings of Australia and Morrison & Kibbey of the USA will bring in $2 million, $15 million, $12 million and $10 million respectively, for the manufacture of bars, rods and wires.
Shougang of China already has a technical collaboration with Bellary Steel & Alloys (BSAL) for the manufacture of steel billet ingots through the electric arc furnace route. The company recorded a turnover of around Rs 190 crore and made a net profit of Rs 22.3 crore in 1995-96.
The total capacity of the plant at Bellar is around 5 lakh tonnes. The company also has a sponge iron plant as part of its backward integration programme.
The total equity of the company is Rs 23 crore out of which the public holds around 19.58 per cent. While directors and promoters hold 21.48 per cent, other companies hold 33.65 per cent and foreign institutions have a 3.47 per cent stake.
Indian financial institutions hold 21.04 per cent out of which IDBI hold 10.54 per cent, ICICI holds 5.04 per cent, IFCI has 4.45 per cent stake in the equity.