| Sources in the company said the allotment is aimed at funding expansion plans of Orissa Sponge. |
| The promoters would infuse around Rs 5 crore through this issue. |
| The company's board has proposed to allot 11.80 lakh equity shares to the promoters for which an extraordinary general meeting has been convened. |
| A company official said the preferential issue will be at a price closed to Rs 40. |
| The share price of Orissa Sponge is now hovering at around Rs 50-51 range. |
| Company sources said promoters would pick up stake in Orissa Sponge mainly through Torsteel Research Foundation in India (TRFI). |
| The promoter group now holds around 62 per cent stake in the company through group entities such as Torsteel Foundation, TRFI Investment, IPICOL and Unitech Investment. |
| IPICOL holds the most "" 25 per cent "" followed by TRFI Investment and Torsteel Research Foundation. |
| "The company is doubling its installed capacity of sponge iron from the present one lakh metric tonne to two lakh metric tonne per year at Keonjhar in Orissa," said a company official. |
| He informed that besides capacity addition, the company is also planning to double the generation capacity of its captive power plant. |
| The capacity of the plant currently is around 10 mw. It is likely to be increased to 20 mw. |
| Torsteel registered a revenue of Rs 34 crore in the quarter ended September 2004 and booked a net profit of Rs 2.5 crore. The revenue for the whole 2003-04 was around Rs 107 crore. |
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