Nelcast plans to raise equity for expansion

Mumbai, May 31 (UNI) Chennai Based, Nelcast Ltd, a Castings and Component Manufacturing Company catering mainly to Commercial Vehicle and Tractor Industries, plans to raise upto Rs 95.27 crore by way of fresh issue of equity shares to domestic investors, Mutual Funds, Banks, Insurance Companies and Corporate Bodies.

The Company has entered the capital market with size of public issue of 43.50 lakh equity shares and its price band would be between Rs 195 and Rs 219 of face value of Rs ten each.

The issue is being made through a 100 per cent book building process. The issue will open on June 4 and close on June 8.

The Company Promoter cum Deputy Chairman Mr P R K Reddy told mediapersons that ''At present, the Company has production facilities in Gudur and Ponneri with installed capacities of 42,000 MT per annum and 60,000 MT p.a. respectively, totalling to 1.02 lakh tonnes per annum. The Company is planning to further expand the production capacities at both the existing plants to achieve a total capacity of 1.50 lakh MT p.a. by FY 09''.

UNI