Visa Steel IPO for funding capex

Kolkata, Feb 23 (UNI) Visa Steel Ltd, part of the Rs 1,664 crore Visa Group, today launched its IPO to raise around Rs 200 crore to part finance brownfield expansion of its existing facilities into an integrated 0.5 million TPA special and stainless steel plant at Kalinganagar Industrial Complex in Orissa.

The Rs 1136 crore brownfield expansion includes setting up of a 50,000 TPA ferro chrome plant, 3,00,000 TPA sponge iron plant and 50 MW waste heat recovery power plant apart from the 0.5 million TPA special and stainless steel plant,Visa Steel Ltd chairman Vishambhar Saran told reporters.

The company intends to focus on value added niche products such as special and stainless steel in order to cater to the increasing demand from auto component, automobile, infrastructure and engineering sectors, Mr Saran said.

For the nine months ended December 31, 2005, the company has achieved revenue of Rs 298 crore with an EBIDTA of Rs 27.9 crore.

For the financial year 2004-05 the company achieved revenues of Rs 252 crore and EBIDTA of Rs 13.2 crore.

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