Godawari Power and Ispat Ltd issue opens Mar 28

Mumbai, Mar 20 (UNI) Godawari Power and Ispat Ltd, promoted by Rs 550 crore Hira Group of Industries, proposes to enter the capaital market on March 28 with a public issue of 86,95,000 equity shares of Rs ten each through cent per cent book building process.

Company's CMD B L Agarwal told reporters here today that the Issue comprises four lakh equity shares reserved for employees leaving net offer to public 82,95,000 equity shares. It closes on April 4 and it would constitute 35 per cent of the post issue paid up capital of the company.

The Price Band has been fixed at Rs 70 to Rs 81. The objective of the Issue is to raise capital for expansion plans of our companay's general corporate purposes and achieve the benefits of listing. The main objects of our Memorandum of Association permits us to undertake our existing activities and the activities for which the funds are being raised by us, through thepresent issue.

The company is presently engaged in integrated business of manufacturing Sponge Iron. It proposes to deploy the funds raised through this issue to part finance setting up of another unit as a part of second phase of expansion near existing unit for manufacturing 260,000 tonnes per annum (TPA) of Sponge Iron, 150,000 TPA steel billets and 25 MW power through waste heat flu gases. The total capacity after expansion shall be Sponge Iron-4,95,000 TPA, Steel billets-4 lakh TPA, Captive Power 53 MW, Ferro Alloys 16,500 TPA and Wire Drawing-60,000 TPA, he added.

UNI AR KU SKB1828