Ramsarup to raise upto USD 50 mn through FCCBs

Mumbai, Jan 16 (UNI) Ramsarup Industries, the second largest maker of steel wires after TATA Steel and also engaged in laying power transmission lines, has received the nod from its Board of Directors to raise funds to the tune of USD 50 million through FCCBs (foreign currency convertible bonds) to fund its ongoing expansion plans.

Accordingly, the Board of Ramsarup has approved an increase in the Authorized Share Capital from the existing Rs 25 crore to Rs 31 crore, in the form of 60,00,000 Equity shares of Rs 10 each.

The company will also consider raising need-based debt through the External Commercial Borrowings (ECB) route.

In order to consolidate its position in the wire industry catering to power and infrastructure sectors, Ramsarup will put up LRPC and other special grades of wire facility at both its Kalyani plant and the new project at Durgapur, with an installed capacity of 79,000 MTPA.

''The company's expansion at Kalyani and Durgapur will cement our position as the leading player for the wire catering to the requirement of power and infrastructure sector. We have received strong feelers from concerned parties about a FCCB or GDR/ADR, but will also consider raising money through debt, depending on the need. Our aggressive growth plan will ensure that we maintain and even build on our strong margins,'' Ashish Jhunjhunwala, CMD, Ramsarup Industries said.

It has recently completed its expansion program in the TMT bars and with a total investment of Rs 29 crore. The TMT bar expansion project in Shyamnagar will produce an additional 90,000 MTs and the wire expansion project at Kalyani and Durgapur, worth Rs 124 crore, will produce an additional 79,000 MTs.

UNI