Rathi Bars to hike steel production by 25%
The company,is expected to decrease production cost of steel by 8-10 per cent following expansion and modernisation of its plants.
By PTI |
NEW DELHI: Steel company Rathi Bars proposes to increase production of high-value steel by 25 per cent from 75,000 tonnes per annum currently after the expansion of its existing capacities.
The company, whose initial Public Offer (IPO) of Rs 25 crore opened today for subscription, is expected to decrease production cost of steel by 8-10 per cent following expansion and modernisation of its plants, said Rathi Bars' Director Anurag Rathi.
Rathi Bars has hit the capital market with an IPO of 71.43 lakh equity shares of Rs 10 at a premium of Rs 25. The public issue will close on October 23.
"The issue is reasonably priced. Expansion and modernisation of the existing facilities will help us in improving quality of the products, controlling costs and providing better returns to shareholders", Rathi said.
The company, Rathi said, is not looking at overseas markets and would be focusing of domestic supplies which has been increasing rapidly as a result of real estate boom.
The company's has clients like DLF, Ansals, Omaxe, DMRC, Eldeco and Hero Honda.
Rathi Bars, which has a net worth of Rs 26.32 crore as on March 31, posted a net profit of Rs 7.7 crore during 2006-07, up from Rs 6.12 crore in the previous year.
The company, whose initial Public Offer (IPO) of Rs 25 crore opened today for subscription, is expected to decrease production cost of steel by 8-10 per cent following expansion and modernisation of its plants, said Rathi Bars' Director Anurag Rathi.
Rathi Bars has hit the capital market with an IPO of 71.43 lakh equity shares of Rs 10 at a premium of Rs 25. The public issue will close on October 23.
"The issue is reasonably priced. Expansion and modernisation of the existing facilities will help us in improving quality of the products, controlling costs and providing better returns to shareholders", Rathi said.
The company, Rathi said, is not looking at overseas markets and would be focusing of domestic supplies which has been increasing rapidly as a result of real estate boom.
The company's has clients like DLF, Ansals, Omaxe, DMRC, Eldeco and Hero Honda.
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Rathi Bars, which has a net worth of Rs 26.32 crore as on March 31, posted a net profit of Rs 7.7 crore during 2006-07, up from Rs 6.12 crore in the previous year.
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