Mumbai, Oct 11 (UNI) Rathi Bars is entering the capital market on October 18 with an Initial Public Offering (IPO) of 71,42,857 equity shares of Rs ten each for cash at a fixed price of Rs 35 per equity share aggregating to Rs 25 crore. The issue will close on October 23.
Company CMD Kamlesh Kumar Rathi told mediapersons, ''The objectives of the issue are to part finance the purchase of plant and machinery for expansion and modernisation, building and civil works and working capital requirements. The manufacturing plant of the Company is situated at RIICO Industrial Area, Khuskhera, Bhiwadi, Rajasthan.'' Company director Anurag Rathi informed that Rathi Bars had started its commercial production in 1996 with a capacity of 48,000 metric tonnes per annum and has now reached an installed capacity of 80,000 metric tonnes per annum as on November 30, 2006. The Company expects to increase its installed capacity to 100,000 metric tonnes per annum after this issue, he said.
The current production volume is around 67,500 metric tonnes per annum. The past year's turnover of the Company was over Rs 190 crore with net profit of over Rs six crore. The earning per share (EPS) of the Company for the three months ending June 30, 2007 was Rs 8.36, he added.