Date:19/05/2006 URL: http://www.thehindubusinessline.com/2006/05/19/stories/2006051904091500.htm

Back Rathi Udyog fixes price band at Rs 50-55

Our Bureau

New Delhi , May 18

Rathi Udyog Ltd has fixed the price band of Rs 50-55 for its follow-on public offer, which will hit the market on May 19, to raise Rs 98 crore.

Of the total Rs 98 crore, the promoters would be investing Rs 40 crore, company Managing Director, Mr Pradeep Rathi, said. The proceeds of the issue would be used for the construction of the company's proposed Rs 277 crore steel plant in Orissa.

"As part of our backward integration plan, we are setting up a steel plant at Sambalpur in Orissa to manufacture sponge iron and steel billets at a cost of about Rs 210 crore," the company's Chief Executive, Mr Udit Rathi, told reporters here. The company would also install 20 MW captive power plant there.