SPS group to issue IPO to fund Orissa project

 The project will be set up in three phases. First, the company intends to set up a 2.2 lakh tonne per annum sponge iron plant and then add a 2.6 lakh tonnes per annum billet caster for making steel in the second phase.

 The third phase comprises blast furnace to produce 2 lakh tonnes of cold pig iron, a rolling mill to manufacture one lakh tonne per annum of finished products and a 20 mw captive power plant.

 The sponge iron plant for which plant and machineries have already been ordered and funds have been tied up with banks, will cost about Rs 62, said BK Vohra, chairman and managing director of SPS. The second phase and the third phase will cost Rs 85 crore and Rs 172 crore respectively.

 The IPO is part of the exercise to mobilise funds for the second phase, Vohra said, adding the company will submit its prospectus to Sebi for approval within a week.