ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Jindal Vijayanagar Steel

EPW Research Foundation Jindal Vijayanagar Steel PROMOTED by JISCO and associated companies belonging to the Jindal organisation and the Karnataka State Industrial Investment and Development Corporation (KSIIDC), the company is setting up an integrated steel plant with a capacity of 1.25 million tons per annum of hot rolled coils at Torangallu in Bellary district of Karnataka, which has rich iron ore reserves having iron ore content up to 67 per cent. The company plans to use the COREX process which it proposes to procure from Voest Alpine Industneanlagenbau (VAl), Austria. VAl is to provide the company technical details for the site work and 'performance guarantee in respect of productivity, coal consumption, top gas generation and calorific value of top gas. The process is non-polluting and generates insignificant quantity of effluents, fumes and dust as compared to the conventionaI steel-making process and hence is environ mem-friendly. The company proposes to soil its products through the established marketing network of the group. The project has been appraised by ICICI and the cost is estimated at Rs 3,300 crore. To part finance the project the company is entering the capital market with simultaneous but unlinked public issues of 13.5 crore equity shares of Rs 10 each at par and party convertible debentures (PCDs) of Rs 40 each. The convertible Part A of Rs 20 of each debenture will be converted into two equity shares at par on allotment. The non- convertible Part B of Rs 20 is to carry 14 per cent interest payable half yearly and will be redeemed at par in four equal instalment at the end of the 6th. 7th, 8th and 9th years after allotment. The issue, slated to open on February 10, is being lead managed by ICICI Securities and Finance, Creditvapital Finance Corporation, IDBI, PNB Capital .Services, SB! Capital Markets and Jardine Fleming India Securities, CRB Capital Markets Promoted by CRB Grou'p. CRB Capital markets has established itself as a front ranking finance compan y in the country providing a whole range of financial services from conception to completion. The company is registered as NBFC with the RBI and has been engaged in leasing and hire purchase since its inception. The company is registered with SEBI as a Category-I merchant banker and a member of OTCEL It has the top position among private merchant bankers in the country. The merchant banking division undertakes issue management, promoter's funding, loan syndication, etc. The other activities of the company are corporate financing, equity research and analysis and investment banking, sponsoring of mutual funds, OTCEI, fixed deposit mobilisation, security trading and capital market operation, consumer finance, international finance and NRI services and portfolio management. The company wants to increase its capital base for expanding leasing and hire purchase for investments in joint venture projects and for enlarging its existing branch/franchise network and selling up new branches and franchises abroad. These business plans have been appraised by Indian Overseas Bank and the cost is cslimilled at Rs 424 crore. To part finance this the company is entering the capital market with a public issue of 86.75 lakh equity share of Rs 10 each at a premium of Rs 90 per share aggregatingRs 86.75 crore. The issue, which is slated to open on January 31, is being lead managed by Indian Overseas Bank and IFCI.

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