The Hindu Business Line : Ankit Metal plans Rs 34.5-cr public issue

LAUNCHING PAD: Mr Mohib N. Khericha (left), Managing Director, Chartered Capital & Investment Ltd, and Mr Ankit Patni, Managing Director, Ankit Metal & Power Ltd, at a press conference to announce the company's IPO in Mumbai on Friday. - Shashi Ashiwal

Mumbai June 15 Ankit Metal & Power Ltd, a Kolkata-based steel manufacturer, plans an initial public offering for 1.19 crore equity shares. The net offer to the public is 84 lakh equity shares to raise a maximum sum of Rs. 34.56 crore.

The price band for the offer is placed between Rs 30 and Rs 36 per share.

The company is raising capital from the public mainly to part finance an integrated steel plant in Bankura, West Bengal. The cost and capacity of the project as appraised by the Bank was estimated at Rs 121.98 crore. The capacities include 350 tonnes per day sponge iron capacity, 65,140 tpa steel melting shop, 100,000 tpa re-rolling mill and two captive power plant of 8.5 mega watts and 4 mw.

The balance funds are financed by way of term-loan from State Bank of India (R. 65.15 crore) and promoters own contribution (Rs 38.49 core).

The project has commenced and the company produced 43,402 tonnes of sponge iron and 35,589 tonnes of ingonts / billets in 2006-07.

Post the issue the promoter and promoter group holding will be 70.83 percent. The extent of holding by qualified institutional investors will be 2.55 per cent and public holding including employee would be 26.62 percent.

ICRA, the rating agency has assigned the company's IPO `IPO Grade 1'.