Bhushan Steel to raise Rs. 547.5 cr via pvt placement

2 September 2015

Debt-laden steel maker Bhushan Steel today said it will seek shareholders’ nod to raise up to Rs. 547.50 crore through private placement of shares to meet the fund requirements of the company.

The company will approach its shareholders with the special resolution at its annual general meeting scheduled later this month, it said in a regulatory filing.

The filing further said the firm will seek shareholders’ approval to authorise the board to “create, offer, issue and allot 18,25,000 redeemable cumulative preference shares of Rs. 100 each, to be issued at such rate not exceeding Rs. 3,000 per share (including maximum premium of Rs. 2,900 per share) for an aggregate amount not exceeding Rs. 547.50 crore.”

Earlier this month, the city-based firm said Monnet Ispat and Energy Ltd has agreed ‘in-principle’ to sell its stake in Orissa Sponge Iron & Steel to Bhushan Steel. However, no commercial terms and valuations have been finalised.

In July, Bhushan Steel said the Joint Lenders Forum (JLF) had agreed for restructuring of about Rs. 30,000 crore loans for a tenure of 25 years under the RBI’s scheme for long-term structuring of loans in line with cash flows.

Shares of the company were trading at Rs. 51.35 apiece, up by almost one per cent in the afternoon trade at the BSE.