Rathi Bars plans Rs 250 mn IPO

MUMBAI: Steel bar maker Rathi Bars Ltd plans to raise Rs 250 million through an initial public offer of 7.14 million shares at Rs 35 each, senior officials said on Thursday. The proceeds from the issue, which would constitute 43.74 percent of the firm's post-issue capital, would be used to expand its annual production capacity and fund working capital, director Anurag Rathi said.

Its capacity is expected to reach 100,000 tonnes per year by December 2008 from the present 75,000 tonnes, he said. "We are working on 85 percent of our capacity and that is expected to go up to 95 percent," he said. The company also plans to start production of billets, he added.

Rathi Bars' customers include India's most valuable real estate firm DLF Ltd, Exide Industries Ltd, NTPC Ltd, Omaxe Ltd and Ansal Properties & Infrastrucutre Ltd, director Anupam Rathi said. The issue opens on October 18 and closes on October 23, 2007.