Surana Industries to raise $50 mln through FCCB, equity

New Delhi, Dec 15 (UNI) Chennai-based steel manufacturer Surana Industries Ltd (SIL) will raise up to 50 million dollars to fund its Raichur (Karnataka) integrated steel plant.

''The Board has approved a proposal to raise 50 million dollars through placement of foreign currency convertible bonds (FCCB) as well as equity by way of qualified institutional placements,'' a company statement said today.

The FCCBs, intended to be listed on the Luxembourg stock exchange, will have a tenure of five years and will become due in June 2012.

The board also approved the proposal to raise the foreign shareholding limit up to 75 per cent of the paid-up share capital of the company.

SIL is setting up a new Integrated Steel complex at Raichur, Karnataka, with a capacity to produce 1,28,000 tonnes of sponge iron. The plant will also contain a 1,36,700-tonne steel melting shop and 1,32,500-tonne rolling mill.

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