Adhunik Metaliks enters Capital Market

Chennai, Mar 10 (UNI) Adhunik Metaliks, a part of the Kolkata based Adhunik Group, today announced its entry into the Capital Market to raise Rs 100 crore to fund its Rs 437 crore Phase-II expansion project.

Addressing a press conference here, G D Agarwal, Chairman said the company was entering with an initial Public Offering (IPO) of equity shares, with a price band fixed between Rs 37 and Rs 42. The issue opens on March 13 and closes on March 17, he said.

The company proposed to list the shares on the Bombay Stock Exchange and the National Stock Exchange, with the former being the designated stock exchange.

Mr Agarwal said the existing phase I of the project, which was set up at a capital outlay of Rs 250, was already on stream and the company proposed to implement Phase-II of the expansion project.

The estimated project cost of Rs 437.36 crore is to be funded through term loans of Rs 284.29 crore, internal acruals of Rs 53.07 crore and the IPO amount of Rs 100 crore. The entire debt component of the project had been fully tied up in the form of sanctions from various leading banks of the country, he added.

As part of the expansion cum forward integration of operations, the company plans to set up the second steel melting shop. "Our plans are to set up an integrated steel plant with backward and forward linkages," he added.

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