Loha Ispaat's Rs 210-crore IPO to hit market on Tuesday

Maharashtra-based steel firm Loha Ispaat is entering the capital market to raise Rs 200-210 crore through an initial public offer (IPO).

The company is tomorrow coming out with an issue of 26,705,476 equity shares of a face value of Rs 10 each through 100 per cent book building process.

The price band for the issue, open for subscription till March 20, is fixed at Rs 77-80 per share. The equity shares will be listed on BSE and NSE.

The company, which aims to raise around Rs 200-210 crore through the issue, intends to use the fund for working capital requirements (post expansion at Khopoli and Taloja plants near Mumbai) and general corporate purposes, Loha Ispaat said in a release here today.

The company, whose promoters are diluting 26 per cent stake, has made a pre-IPO placement of 4 per cent of equity with FIIs.

Loha Ispaat, engaged into steel processing and services, operates two units in Maharashtra.

The company has taken up Rs 358.76 crore expansion at the plants (at Khapoli and Taloja) and it will be funded through a mix of debt and promoter's equity with Punjab National Bank being the lead banker.

Loha Ispaat has set up two subsidiaries in Dubai and Hong Kong to carry out international business and marketing activities.