Ispat enters into strategic agreement with Stemcor
17 Sep 2010
Ispat Industries has signed a strategic co-operation agreement with Stemcor Holdings Ltd, London, the world's largest independent steel trader.
Under the agreement, Ispat, which has debts to the tune of Rs6,500 crore, will allot up to 10 per cent equity to Stemcor.
Stemcor will also bring in $75 million working capital to the company under an export securitisation programme, Ispat said in a statement.
Ispat will issue 10 per cent of its equity capital to Stemcor through a preferential allotment of shares.
Additionally, Stemcor would invest towards expanding Ispat's production facilities to at its pellet plant to 3 million tonnes a year in a planned manner.
Ispat is also in the process of setting up a 110 MW power plant, as also a 1MT coke oven plant.
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