Date:16/05/2006 URL: http://www.thehindubusinessline.com/2006/05/16/stories/2006051604770300.htm

Back Rathi Udyog plans follow-on issue

Our Bureau

Mr Pradeep Rathi, Managing Director, Rathi Udyog Ltd, with Mr K. Srinivas, President, UTI Securities Ltd, at a press conference in Mumbai on Monday. - Paul Noronha

Mumbai , 15 May

Rathi Udyog Ltd, part of the Delhi-based P.C. Rathi Group and a manufacturer of long steel products, plans to tap the capital market with a Rs 98-crore follow-on public issue.

The shares would be of Rs 10 each for cash at a premium to be decided through the book building process. The issue would be 100 per cent book built.

The issue opens on May 19 and closes on May 25, an official statement said.

According to it, the funds raised will be used to finance expansion plans at the company's Ghaziabad facility. It will also use the funds to set up an integrated steel project at Sambalpur, Orissa for manufacture of 150,000 tonne of sponge iron and 150,000 tonne of steel billets along with a 20 MW captive power plant.

The cost of projects is estimated at Rs 277.77 crore. It will be funded through term loans of Rs 179.77 crore with the balance being met from issue proceeds.