Bhushan Steel is reportedly nearing completion of its 3 million tonne (mn t) capacity expansion project at its Odisha plant and the firm expects to begin hot metal production from the new blast furnace by March.
Presently, the firm has a production capacity of 2.5 mn tpa (million tonne per annum) and it produces secondary steel products like cold-rolled coils, galvanised coils, colour-coated coils, etc, from its three manufacturing facilities in Uttar Pradesh, Maharashtra and Odisha.
The project, which was originally estimated to be completed in October last year, got delayed owing to various reasons, including some accidents at the plant site.
The ongoing capacity enhancing project, in which the firm invested over Rs 15,000 crore, would raise the steel plant’s output capacity to 5.2 mn t.
Further, the company is also in the process of increasing its cold rolling mill’s capacity to about 2 million tonne by March-end, reports suggest.
The company is in the process of launching a rights issue of Rs 475 crore and the money from it would be used to part-finance expansion activities and in retiring part of over Rs 22,000 crore debt.
The company will be issuing one equity share at a price of Rs 335 for every 15 equity shares held by its existing shareholders through the issue.
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