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SAIL invite bids to raise upto Rs 2,250 crore

18 Jun 2011 Evaluate

Steel Authority of India (SAIL) has invited bids to raise upto Rs 2,250 crore via commercial paper. The unsecured papers are rated 'PR1+' by CARE, are of 30-, 57- and 86- day tenures. Bankers have been requested to bid by June 21, 2011 for the commercial paper.

Recently, the company was planning to borrow $400 million from overseas lenders to finance partially expansion and modernization plans of the company. The company was likely to raise $400 million through external commercial borrowings (ECBs). To raise domestic production to 23.46 million tonnes per annum (mtpa) by 2012-13 from 14.35 mtpa at present the company had already embarked on a Rs. 70,000-crore capacity expansion plan.

The company has reported a drop of 27.71% in its net profit of Rs 1507.12 crore for the quarter ended March 31, 2011 as compared to Rs 2084.90 crore for the quarter ended March 31, 2010. Total income has declined marginally by 0.78% to Rs 12573.90 crore for the quarter ended March 31, 2011 where as the same was at Rs 12672.69 crore for the quarter ended March 31, 2010.

For the year ended March 31, 2011, the company’s net profit decreased by 27.73% to Rs 4881.25 crore as compared to Rs 6754.37 crore for the year ended March 31, 2010. Total income of the company was down marginally by 3.76% to Rs 44858.89 crore for the year ended March 31, 2011 from Rs 43233.26 crore for the year ended March 31, 2010.

SAIL Share Price

167.90 1.80 (1.08%)
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