Rathi bars to raise Rs 25 cr via IPO

New Delhi, Oct 16 (UNI) Steel bar maker Rathi Bars Ltd will raise Rs 25 crore through an initial public offer (IPO) of 71,42,857 shares of Rs 35 each.

'' Through this IPO we aim to part finance the purchase of plant and machinery for expansion and modernisation, building and civil works and working capital requirements, ''company's Director Aurag Rathi told reporters here.

The company expects to augment its capacity to 1,00,000 tonnes per year by December 2008 from the present 75,000 tonne.

''We are working on 85 percent of our capacity and that is expected to go up to 95 percent,'' Mr Rathi said.

The issue opens on October 18 and closes on October 23, 2007.

Rathi bars Ltd expects to clock a turnover of Rs 230 crore in 2007-08, Mr Rathi said. The company earned a turnover of Rs 190 crore and a net profit of Rs six crore for the financial year 2006-07.

In its attempt to consolidate in-house production of raw materials, Delhi-based manufacturer of steel bars is alo planning to begin production of ms billets by 2008-end.

The cast products used in manufacturing of steel bars will be produced at a volume of 150 tonnes per day and would help the company reduce the cost of production by five to seven per cent.

Rathi Bars' customers include country's real estate majors DLF Ltd, Exide Industries Ltd, NTPC Ltd, Omaxe Ltd and Ansal Properties&Infrastructure Ltd.

UNI