Adhunik Metaliks to go for IPO

Kolkata, Mar 11(UNI) Kolkata-based Adhunik Metaliks plans to go for a Rs.437-crore expansion-cum-forward integration programme for its project in Orissa's Rourkela for setting up of an integrated steel plant.

As part of the operations in the second phase, the company would set up the second steel melting shop with vacuum degassing plant, rolling mill, argon-oxygen degassing plant with bloom continous casting machinery, ferro alloy division, a second captive power plant, singer plant, oxygen plant, a private railway sliding and captive iron ore and coal mining.

"Our plans are to set up an integrated steel plant with backward and forward linkages. On completion of phase two, we will be able to manufacture a range of steel products, including auto grade steel," company Managing Director and Chief Executive Officer (CEO) Manoj Agarwal said.

To part finance the project, the company enters the capital market with an Initial Public Offering (IPO) of equity shares aggregating to Rs. 100 crore which opens on March 13 for five days.

The rest of the project cost would be funded through term loans of Rs. 284.29 crore from banks and internal accruals of Rs. 53.07 crore.

Mr.Agarwal said while the first phase was already on steam, the second phase expansion would be implemented by March, 2007, except the iron ore mining component.

He said the group was vertically integrated and various intermediate products were produced for captive consumption, which would help lower the cost of production and make the company highly competitive.

He said 65 per cent of the product of the plant would be carbon and alloy steel which was necessary for automobile and engineering industries, projected to have a boom in the country.

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