Usha Martin ups capex by Rs 850cr

Steel pipe manufacturer Usha Martin has increased its planned capital expenditure by Rs 850 crore to Rs 2,100 crore from Rs 1250 crore. The company took the decision to this effect at its board meeting today.

The company will set up a mineral beneficiation plant and a pellet plant to optimise the utilisation of its mineral resources. It is planning to expand captive power capacity for its steel plant at Jamshedpur and wire rope plant at Ranchi. It is also planning to expand capacity of wire rope and strand products to cater to the growing demand of infrastructure, oil and gas and construction sector within India and globally, an official release issued by the company to the BSE today.

Of the total investment of Rs 850 crore, the company would infuse Rs 335 additional equity by way of preferential allotment of warrants to promoters at Rs 87 per share over the next 18 months and the balance would be combination of debts and internal accruals, it said.