| The funds will be used to float a Rs 100-crore subsidiary, SAL Steel Ltd. Of the remaining Rs 50 crore, Rs 35 crore will be pumped in by the parent company and Rs 15 crore will be the promoter's contribution. |
| "We are planning an IPO in mid-September to raise funds to float SAL Steel Ltd. The subsidiary will have its manufacturing unit in the Kutch district and will manufacture ferro alloys and steel iron," Rajendra Shah, chairman and managing director, Shah Alloys, said on Wednesday. |
| The company reported a turnover of over Rs 1000 crore in the last financial year and targets to cross Rs 1200 crore in the current financial year. Exports contributed Rs 400 crore to turnover in the previous year. Shah Alloys is eyeing exports of Rs 500 crore this year. |
| SAL Steel's new manufacturing unit in Kutch is expected to commence commercial production by the end of this calendar year. The company has already invested over Rs 50 crore in the unit. |
| The facility will have installed production capacity of over 6000 tonne of ferro alloys per month and over 15,000 tonne of sponge iron per month. |
| Shah Alloys is also planning to set up a Rs 100 crore lignite-based power plant to provide power to its manufacturing facility. The plant is expected to produce 40MW of power. |
| "The first phase of the work for the Kutch plant is expected to be completed by the end of November. In the second phase, we will install the lignite based captive power plant to supply power to our manufacturing unit, which is expected to be completed by April, next year," said Shah. |
| On increasing steel prices, Shah said: "Prices of steel are bound to increase due the rise in prices of raw materials and the surge in international demand for steel. Still, we have exported around 40 per cent of our turnover and our exports will rise again this year". |
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