Usha Martin raises $ 125 mn through ECB

The country’s biggest steel wire rope manufacturer Usha Martin on Thursday said it has raised $ 125 million through external commercial borrowing to part finance its expansion activities.

“... the Company has arranged $ 125 million via ECB from State Bank of India as sole mandated lead arranger and bookrunner with DBS Bank Ltd, State Bank of India (Canada) and The Bank of Tokyo — Mitsubishi UFJ Ltd as other participating lenders,” the company said in a filing to the Bombay Stock Exchange.

It added that the money will be used to part finance its capital expenditure of Rs 1,200 crore to strengthen its cost competitiveness in steel business and maintaining global leadership position in the wire and wire rope industry.

In January also, the company had raised Rs 468.15 crore by selling 54.5 million shares to financial institutions at Rs 85.90 each.

According to the company website, the Rs 3,000 crore group is expanding its business to iron ore and coal mines, sinter plant, pellet plant, power plants, while also enhancing its steel making and value added products capacity.

The stock today closed at Rs 56.80 apiece on the Bombay Stock Exchange, up 1.52 per cent from the previous close.