Tata Metaliks to raise Rs100 crore via placement of debentures
29 Dec 2008
Tata Metaliks, a Tata Steel outfit engaged in manufacturing and selling pig iron, proposes to raise Rs100 crore through private placement of debentures.
The decision was taken at the meeting of the board of directors of the company held on 26 December.
Tata Metaliks plans to borrow money by privately placing non-convertible redeemable debentures or by other means, the company said in a filing with the Bombay Stock Exchange.
Harsh K Jha, managing director of Tata Metaliks, said the tenure and the interest rate would be finalised in the next 10 days.
''We will shortly sign an agreement with a lead arranger. The debentures would be subscribed by financial institutions. It will be a private placement,'' he said.
Tata Metaliks said it opted for debentures as the company wanted a clear visibility on the exact amount of cash outgo during the term.
Meanwhile, the company is setting up a ductile iron pipe manufacturing project with Kubota of Japan in Kharagpur. The project is nearing completion and trial production is expected to start from January.
The first phase of the venture involves an investment of Rs150 crore and the production target is 110,000 tonnes a year.
The unit will use liquid pig iron from the company's existing mini blast furnace.
Tata Metaliks' steel project in Karnataka, which has sought a fresh location and 900 acres instead of 700, is yet to take off.
The company offers low sulfur and low phosphorus grade pig iron used in specialised applications like pressure tight precision castings, crankshafts, gears, rolling mill rolls, automobile engine blocks, motor and generator housings, railway and machine tools.
Tata Metaliks has manufacturing units in Kharagpur, West Bengal and Redi, Maharashtra.
