K'taka: Surana Industries to set up steel complex

Mumbai, May 16: Surana Industries Limited is contemplating on setting up an integrated steel complex at Raichur in Karnataka, at a total cost of Rs 473 crore. The project, which has been appraised by IDBI, will be an addition to its already existing steel plant at Gummidipoondi in Tamil Nadu where it manufactures thermo-mechanically treated bars, M S Rounds and M S structural and other steel items.

The company is also mulling raising equity capital of around Rs 300 crore by way of a public issue with a premium and the draft red herring prospectus will be filed shortly, a release issued here today stated. The company has retained Punjab National Bank, Merchant Banking Division, New Delhi, as its book-running lead manager.

Meanwhile, the company has clocked a whopping 600 per cent vault in its PAT from Rs 3.93 crore in FY 05 to Rs 23.44 crore in FY 06, while its sales increased from Rs 489.71 crore to Rs 625.52 crore.

The EPS for FY 06 works out to Rs 15.32. The company has attributed the increase in profit to the installation of induction furnace for production of 30,000 tonnes per annum of mild steel ingots as well as the realization of a premium on its superior quality Surana TMT bars.

Recently, the company has installed eight more wind mills at a total cost of around Rs 81 crore. Together with the existing one wind mill, its power needs of around 3.80 crore units per annum are fully met, thus contributing to a large extent for the increase in the profitability of the company.

The company has also declared a dividend of 10 per cent for the year ended March 31, which has been declared on the enhanced paid up capital of Rs 15.50 crore which was increased during the year from Rs 10.50 crore.

UNI