Kalyani Steels to raise Rs52cr

The board of directors of Kalyani Steels, which met today, approved a proposal to raise Rs 52 crore by issuing 16 lakh equity shares at Rs 325 per share to a financial investor.

According to a release issued by the company to the BSE today, the investor will be identified by a finance committee of directors.

An EGM has been called on November 14, 2006 to obtain shareholder approval for the above proposal, the release added.

The meeting also authorised the finance committee of directors to appoint a professional agency to advise about the possibility of demerging the investment division of the company.

The board also approved a propsal to sign an agreement to acquire 80% equity of SJK Steel, after restructuring its capital as per CDR scheme, for Rs 24 crore.

"Further investment by way of equity may be made by the company up to Rs 32 crore. Prior to the restructuring, SJK Steel has a debt of Rs 1,306.90 crore.

"SJK Steel has an integrated alloy steel plant at Tadipatri, Dist. Anantpur, Andhra Pradesh with a capacity to manufacture 2,50,000 metric tonne," the release added.