Ispat Ind Plans Rs 335cr Float For Dolvi
The M L Mittal-owned Ispat group's flagship, Ispat Industries Ltd, proposes to come out with a public issue of Rs 335.71 crore next year to part-finance its proposed Rs 4,792 crore hot strip mill project at Dolvi, Maharastra.
The proposal has received approval of the Industrial Finance Corporation of India Limited (IFCI) which was also responsible for the appraisal of the hot strip mill project.
The appraisal was done in February this year.
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The company has not made any domestic public or rights issue of equity shares during the last five years. In 1991, the company had launched a public and rights issue to finance its gas-based sponge iron plant at Dolvi. As per the offer document, the project cost was stated to be Rs 624 crore while the actual cost of implementation has been been pegged at Rs 808 crore.
The sponge iron plant, which started commercial production in December 1994, has an installed capacity of one million tonne per annum. The company also has a cold rolling (CR) complex at Nagpur.
Ispat had also made a $ 125-million euro covertible bond (ECB) issue in March 1994 to mainly finance its sponge iron project, and the currently on-going hot strip mill project.
The euro-issue is a 3 per cent convertible bond whose proceeds translated into Rs 392.13 crore. Out of this, Rs 215 crore will be deployed in the hot strip mill project.