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Bhushan Steel to raise Rs 475 crore through rights issue

08 Jan 2013 Evaluate

Bhushan Steel has decided to raise Rs 475 crore through a rights issue, which will be launched in the third week of this month. It aims to use these funds to part-finance its expansion activities, particularly in Odisha. The city based steel maker will be issuing one equity share of Rs 335 for every 15 equity shares held by its existing shareholders through the issue.

The company has a production capacity of 2.5 million tonnes per annum (MTPA) and it produces secondary steel products like cold-rolled coils, galvanised coils, colour-coated coils, etc., from its three manufacturing facilities in Uttar Pradesh, Maharashtra and Odisha.

Bhushan Steel has three plants in Uttar Pradesh, Maharashtra and Orissa, with total annual production capacity of more than 2 million tones. It produces secondary steel products like cold-rolled coils, galvanised coils, high tensile steel strapping and colour coated coils.

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