Back Usha Martin hikes investment outlay
Our Bureau
Kolkata, Nov 13 Usha Martin Ltd has hiked its capital investment outlay from Rs 1,250 crore earlier to Rs 2,100 crore. The board of directors of the company has approved the same at a meeting that was held here today.
According to a communication received from the company, the enhanced scope of the capital projects include enriching the value of minerals by setting up a beneficiation plant and a pellet plant as also optimising available mineral resources.
The capacity of its captive power plant would be augmented adequately such that it would meet the entire requirement of the company’s steel plant at Jamshedpur and its wire rope plant at Ranchi. Besides, the capacity of the company’s wire rope and strand products would be expanded to cater to the growing demand of the infrastructure, oil & gas and construction sector in India as well as globally.
The communiqué states that the incremental expenditure of Rs 850 crore would be part-funded by infusion of additional equity of Rs 335 crore by way of preferential allotment of warrants to the promoters of the company at Rs 87 per share having a face value of Re 1 per share over the next 18 months subject to requisite approvals. The balance of the funds required shall be met from internal accruals and debt, the communiqué adds.
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