Vikash Metal & Power have announced to that they plan to have a rights issue to raise funds for the development of a new plant.
The rights issue is still yet to be agreed. The next board meeting on the 30th May 2011 will discuss the options further.
Akkash Patni, executive director of Vikash Metals, told moneycontrol.com that they hoped to raise between “Rs100 crore to Rs125 crore”. A Crore is 10 million rupees, so they are hoping to raise 10,000,000,000 – 12,500,000,000 rupees, which is the equivalent of 134 – 162 million pounds. So a large amount of cash.
Vikash Metal & Power stock price has increased today by 4.56% on the back of this news.
Vikash Metal & Power Limited is a major Indian iron and steel manufacturer. They operate a power plant. Their main products are:
- Sponge iron
- MS billets
- MS rounds
- TMT bars
- Ferro alloys
- Pig iron
Its steel and iron products are used in the construction industry for bridges, buildings, highways. They also export iron and steel. Vikash Patni is the Managing Director and Executive Director.
More on the rights issue soon.