Rathi Thermax plans IPO to fund Rs 200cr capex

The Rs 1,500 crore Rathi Thermax Group, a medium-sized steel company, will tap the markets in the next three months with a public offer to fund its expansion plans estimated at Rs 200 crore.

Buoyed by the boom in housing and infrastructure, the group has decided to enhance the production capacity in its three plants - two in Ghaziabad (Uttar Pradesh) and one in Bhiwari (Rajasthan), from the present 60,000 tonnes a month, the company said today.

"The company will approach the primary market to raise funds for its expansion plans," its executive director Anurag Rathi said in the statement.

He said, in colloboration with Germany-based Hennigsford Stahl Engineering, the group has already introduced steel with higher strength and toughness and beter welding characterisitics.

The two companies of the group - Rathi Ispat and Rathi Udyog are already listed on the Bombay Stock Exchange.