Mumbai, July 4
SHRI Ramrupai Balaji Steels Ltd, part of Rs 500-crore Kolkata based Jai Balaji Group, is entering the capital market on July 8 with an IPO of 2 crore shares of Rs 10 each through a 100 per cent book building route to part-finance its Rs 285-crore project for a vertically integrated steel plant in Durgapur, West Bengal.
The price band for the issue has been fixed at Rs 20-22 per share. The issue closes on July 14. The company has reserved 10 lakh shares for allocation to permanent employees, leaving net offer to the public at 1.9 crore shares. The issue would constitute 30.31 per cent of the post issue paid up capital of the company.
Total funds to be raised through this issue would work out to Rs 40 crore at lower end of the price band and Rs 44 crore at higher end of the price band. The Book Running Lead Managers to the issue are Microsec India Ltd and Anand Rathi Securities Private Ltd and Registrar to the issue is Intime Spectrum Registry Ltd.
The Jai Balaji Group has an installed capacity of 345,000 tonnes of sponge iron and 363,000 tonnes of semis and rolled products making it a large player in the steel industry in Eastern India.
Shri Ramrupai Balaji Steels has already commissioned facilities to manufacture 1,20,000 tonne per annum (TPA) of sponge iron, 80,500 tonne of pig iron and a rolling mill with a capacity of 80,000 tonne per annum. And the commercial production for all these units has already commenced. The steel melting shop, with a capacity to manufacture 1,76,418 TPA of MS billets and a coal washery, with the capacity of 2,16,000 TPA is expected to be commissioned by August 2005. The company is also in the process of setting up a 40-MW captive power plant.