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New Delhi: Bhushan Steel will add 3 million tonnes capacity by March at its Odisha plant to increase its total steel making capacity to 5.2 million tonnes (MT).
"We have invested over Rs 15,000 crore to expand our plant in Odisha. It is now almost complete and we are giving finishing touches to commission the new 3 MT capacity. By March, hot metal production from the new blast furnace will begin," a source in the company said.
The capacity expansion was originally estimated to be completed in October last year. However, it got delayed due to various reasons, including some accidents at the plant site.
However, the company source said that "expansion has not been delayed and smaller units have already been started since October. We are confident of completing the expansion by March."
Besides the new capacity at Odisha, the city-based steelmaker is also in the process of increasing its cold rolling mill's capacity to about 2 million tonnes by March-end, the source added.
Bhushan Steel currently has a production capacity of 2.5 MTPA (million tonnes 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.
This week, the company will be launching a rights issue of Rs 475 crore as well and the money from it will 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.
Recently, it had also sought shareholders nod through postal ballot to raise up to USE 1 billion (over Rs 5,400 crore) through issue of fresh securities.
As on September 30, the company had long-term borrowings of Rs 19,584.71 crore and short term borrowings of Rs 4,064.54 crore.
