AML Steel files draft red herring prospectus

Chennai-based AML Steel Ltd has filed draft red herring prospectus with Securities & Exchange Board of India (Sebi) for its forthcoming follow-on public issue of equity shares of Rs 10 each for cash at a premium aggregating Rs 120 crore.

The company is raising the money to part finance its wholly-owned subsidiary's integrated steel project being set up in Jharkhand, acquisition of existing steel plants and to fund the working capital requirements of the company and its wholly owned subsidiaries, a company release said. The subsidiary has already been allotted 384 acres of iron ore mine in Bokana village in Jharkhand to feed iron ore requirements to the above project.

Of the Rs 120 crore to be raised through the issue, Rs 20 crore would be raised as promoters' contribution and the balance Rs 100 crore would be the net offer to public.

The issue is to be made through a 100 per cent book building process to be conducted on the Mumbai and National Stock Exchange.