New Delhi: Bhushan Steel Ltd on Wednesday said it would seek shareholders nod to raise up to $1 billion (over Rs.5,400 crore) through issue of fresh securities. “... the directors of the company passed resolutions by circulation as on 25 December 2012, inter-alia recommended for approval of shareholders further issue of securities not exceeding $1 billion through the process of postal ballot,” the company said in a filing to the BSE.
It, however, did not specify when the company will be going for the fund raising and where the money will be used. The company, which mainly produces secondary steel such as cold-rolled coils, galvanised coils, colour-coated coils, has a production capacity of 2.5 million tonnes per annum from its three manufacturing facilities in Uttar Pradesh, Maharashtra and Orissa.
The company is also expanding its capacity further by a new three million tonnes per annum plant in Orissa. As on 30 September, the company had long-term borrowings of Rs.19,584.71 crore and short term borrowings of Rs.4,064.54 crore.
During the first half of the current fiscal, Bhushan Steel reported a net profit of Rs.407.48 crore and net sales of Rs.5,395.55 crore. Shares of the company closed on Wednesday at Rs.464.10 apiece on the BSE, up 1.46% from their previous close.