The Hindu : Business : Visa to establish stainless steel plant

Online edition of India's National Newspaper
Saturday, Feb 18, 2006

Business

Business

Visa to establish stainless steel plant

Corporate Reporter

To adopt modular approach in project implementation

CHENNAI: Visa Steel, the flagship manufacturing company of the Rs. 1,650-crore Visa group, is entering the capital market with an initial public offer of 3.5 crore equity shares of Rs. 10 each at a price band of Rs.52-57 through the 100 per cent book building process.

The issue will be open for subscription from February 23 to 27.

The funds are required to part finance the capital expenditure on brownfield expansion of its existing manufacturing facilities into an integrated five lakh tonnes special and stainless steel plant at the Kalinganagar Industrial Complex, Orissa.

The company's product portfolio includes pig iron, chrome concentrates and coking coal.

Addressing presspersons here on Friday, Vishambhar Saran, Chairman, said the company was adopting a modular approach in implementing the project and the blast furnace of 250 cubic metre capacity had already been commissioned.

The company was going ahead with the construction of a 50,000 tonne ferro chrome plant, three lakh tonne of sponge iron plant and a 50 MW waste heat recovery power plant. The modular approach would generate early cash flows, the Chairman said. The entire project would be ready by the end of next year, he said.

Vishal Agarwal, Managing Director, said the company would focus on valued added products such as special and stainless steel to cater to the increasing demand from auto component, infrastructure and engineering sectors.

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