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Saturday, March 04, 2006

Gallantt Metal to raise Rs 37.12cr through IPO

Gujarat-based Gallantt Metal will raise Rs 37.12 crore (Rs 371.2 million) from the capital market with issue of 371.20 lakh equity shares of Rs 10 each at par to part finance a Rs 190.82 crore (Rs 1.90 billion) vertically-integrated greenfield steel plant at Gujarat, report agencies.

The company has raised Rs 114.50 crore (Rs 1.14 billion) as term loans while promoters' contribution has been Rs 45.2 crore (Rs 452 million).

"Of the issue, 60 lakh equity shares is contribution from promoters, 5% has been reserved for the permanent employees while the net offer to public is 295.64 lakh equity shares," company CMD CP Agrawal said.

Issue opens on March 6 and closes on March 10.

The first phase of the two-phase integrated steel plant comprises of sponge iron division of 99,000 tonnes per annum capacity, a MS Billets division of 1,76,429 tonnes per year and re-rolled products division with 1,68,300 tpa.

The commercial production of phase one has already commenced from December 2005.

Company has begun the implementation of second phase for installing 18 MW captive power plant to be commissioned by October, 2006.

Gallantt is presently utilizing 60% of its capacity and plans to utilize complete capacity by 2008.

"We will increase our capacity utilization every year by 10% and plan to make it 100% by 2008," company Director Nitin Kandoi said.

Company is also planning to launch special steel and alloy, he said.

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