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Sunday, January 22, 2006

Adhunik Metaliks to float IPO by March 2006

Value-added steel manufacturer Adhunik Metaliks would hit the capital market with an IPO by March 2006 to raise funds to part finance the company's expansion plans, report agencies.

Managing Director of Adhunik Metaliks, Manoj Agarwal, said that the company plans to raise Rs 100 crore (Rs 1 billion) from the market, adding that the issue would be made through the 100% book-building route.

Agarwal said that the company is targeting the automobile sector for becoming an original equipment manufacturer, OEM, of auto-grade steel parts for Tata Motors and Mahindra & Mahindra.

He said that the company, which had already procured an iron mine, is also in the process of acquiring a coal mine for which it has applied to the government.

With setting up a 30 MW captive power plant at its plant in Rourkela, Agarwal said that the company would be able to produce at a cost-effective price.

The expansion of the plant would entail enhancing of capacity from 0.2 million tonnes to 0.43 million tonnes.

The company had already filed the draft red herring prospectus with Sebi.

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