Rathi Udyog to enter capital market with Rs 98 crore

Mumbai, May 15 (UNI) Delhi based 'Rathi Udyog Limited', part of P C Rathi Group will enter the capital market with follow-on public issue to raise 98 crores, through issue of equity shares of Rs 10 each for cash at a premium to be decided through book building process, said CEO Udit Rathi at a press conference here today.

Rathi, a leading manufacturer of long steel products in Northern India will announce price band for the issue one day prior to the opening of the issue.

Udit Rathi in his presentation to media persons stated that the company is raising additional capital to part finance its expansion plans at its Gaziabad facilities as also set up an integrated steel project at Sambalpur in Orissa.

He added that the Sambalpur plant will manufacture 1,50,000 tonnes of sponge iron and 1,50,000 steel billets along with a 20 MW captive power plant. The cost of expansion at gaziabad and integrated orissa project is estimated at Rs 27,777 lakhs.

''Foraying into Stainles Steel and Alloys Steel products at our recently commissioned facilites at the Gaziabad Plant will enable our company to cater to demands from industrial and engineering sectors'', said Udit Rathi.

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