The Hindu Business Line : Surana Industries plans public issue

THE Chennai-based Surana Industries proposes to come out with a public issue next year to raise funds for its 1.5-lakh-tonne, Rs 500-crore integrated steel project that is coming up at Raichur, Karnataka.

The equity portion of the project is expected to be around Rs 140 crore, company officials have told Business Line. The officials said the issue would be at a premium, but did not disclose by how much. . However, it was pointed out that in April, the company raised Rs 30 crore through a private placement of shares at a premium of Rs 50. Most of the shares were placed with some Singapore-based NRIs, they said.

After the private placement, the paid-up equity of the company increased by Rs 5 crore to Rs 15.50 crore. Today, the Indian promoters hold a 49.79-per cent stake, private corporate bodies 9.47 per cent, the Indian public 15.58 per cent and NRIs/ overseas corporate bodies 25.12 per cent.

Sources said that the Raichur project is awaiting mine allocation from the Karnataka Government.

Shares of Surana Industries hit the upper ceiling on Monday. Market sources attributed this to news that the company's profitability would go up, thanks to its 12-megawatt wind farm going on stream next month. The stock closed at Rs 33.65 against the Friday's close of Rs 28.05 on the BSE and about 7,500 shares changed hands.

Surana Industries produces construction steel from its rolling mill in Gummidipoondi near Chennai. Last year, its turnover was Rs 489.70 crore and net profit Rs 3.93 crore. In the first quarter of the current year, its turnover was Rs 151.53 crore and net profit Rs 1.57 crore.

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