Uttam Galva Steels plans to raise up to Rs 175 crore through placement of shares to fund expansion and augment long term resources.
“The company proposes to raise funds up to Rs 175 crore in one or more tranches through a public issue and/or a private placement basis and/or QIP...,” it said in a letter to the shareholders ahead of an extraordinary general meeting to be held on March 23.
Uttam Galva Steels, which has 10 lakh tonne cold rolling capacity at its Khopoli plant in Maharashtra, plans to use the fund for financing several “identified” opportunities for growth.
It also has 7.5 lakh tonne galvanised steel making capacity.
“The company has identified several growth opportunities in its area of business. This capital raising programme is to augment the long-term resources for future expansion, to meet long-term working capital requirement...,” Uttam Galva Steels said.
The fund could also be used for meeting other general corporate business purposes allied to the business from time to time.
The company’s scrip settled at Rs 68.85, up 4.95 per cent over the previous closing on the BSE.