Bhushan Steel plans to raise $1 bn, Q4 profit up 19.5% | business | Hindustan Times
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Bhushan Steel plans to raise $1 bn, Q4 profit up 19.5%

business Updated: May 07, 2011 21:50 IST

Bhushan Steel, the country's third-largest producer of secondary steel, on Saturday said it plans to raised $1 billion through an issue of securities.

In a filing to the Bombay Stock Exchange, the company said its Board has approved "further Issue of securities not exceeding USD one billion".

However, the company did not disclose the details about how the funds will be raised and how it would be utilised.

The company officials could not be reached for comments on the issue.

In April, the Bhushan Steel had said that it plans to invest about Rs 5,000 crore for setting up 1.8 million tonnes new steel making capacity in Orissa.

The company today also reported a 19.5 per cent growth in the its net profit at Rs 287.9 crore for the quarter ended March 31, 2011 as compared to Rs 240.93 crore it had achieved during the January-March quarter of FY'10.

Income from operations of Bhushan Steel for Q4 in 2010-11 was Rs 1,966 crore, over Rs 1608 crore for the same period a year back, it added.

For the full-year ended March 31, 2011, the secondary steel producer's net profit rose to Rs 1033 crore from Rs 845 crore in the same period a year ago.

The company, with a total production capacity of 2 million tonnes per annum (MTPA), has three plants in Uttar Pradesh, Maharashtra and Orissa and produces secondary steel products like cold-rolled coil, galvanised coil, high tensile steel strapping, colour coated coils, among others.

Bhushan Steel had earlier said that the company will have a production capacity of 5.5 MTPA by September, 2012 and will make an investment of Rs 12,000-14,000 crore for the expansion.

In last October, it had signed an agreement with Sumitomo Metals of Japan for setting up a new six million tonne steel plant in West Bengal at an estimated investment of over Rs 20,000 crore.

The project requires about 2,500 acres of land, which is yet to be acquired.