Ankit metal to invest Rs 122 cr steel plant, go for IPO

Kolkata, Jun 19(UNI) Ankit Metal&Power Limited(AMPL), a Kolkata based steel company, will set up an integrated steel plant with an investment of Rs 122 crore at Bankura in West Bengal in three phases.

The integrated plant would have a sponge iron plant, a rolling mill and steel melting shop for making mild-steel and re-rolled products and two captive power plants.

The company would raise funds to part finance the setting up of the plant. The project would be financed with equity of Rs 38.49 crores which has already been brought in by the promoters, Rs 65.15 crores as Term Loans from the banks and balance through this Public Issue which further has a Promoter Contribution of 23,10,000 Equity Shares.

The company would enter the capital market with an Initial Public Offer of 1,19,00,000 shares through 100 per cent book building route.

The equity shares of face value of Rs 10/- each are being offered for cash at a price band of Rs 30 to Rs 36 per share. The bid for issue opens on Monday, June 18, 2007 and closes on Friday, June 22, 2007. Chartered Capital And Investment Limited is the Book Running Lead Manager to the issue.

The company has already implemented the sponge iron plant and commercial production has started since October 2006. The plant has a manufacturing capacity of 105,000 tones a year.

The implementation of phase II involves setting up steel melting shop comprising induction furnaces&billet concaster with a total capacity of 65,140 tones a year and a re-rolling mill with a capacity of 100000 tones a year along with 8.5 MW power generating plant from waste heat recovery.

The other captive power plant with a generating capacity of 4 MW of power will be implanted in phase III. The capital expenditure on sponge iron plant is Rs 38.25 crores. The expenditure will be Rs 66.77 crore and Rs 16.96 crore respectively for phase two and three.

In 2006-07, the company's turnover was Rs 209.94 crores and PBT was Rs 16.11 crores. Net profit stood at Rs, 10.54 crores compared to Rs 3.48 crores in 2005-06.

The company is implementing the project in view of the robust demand for sponge iron in the country. Since 2000-01, the demand for sponge iron for coal based unit has increased at a CAGR rate of 21 per cent.

UNI