By IANS
Chennai : Chennai-based steel conglomerate Surana Industries Limited (SIL) has issued foreign currency convertible bonds worth $25 million (Rs.1.09 billion) to partly fund its new integrated plant in Karnataka.
The proposed plant in Raichur is estimated to cost Rs.4.73 billion, and the balance amount is being sourced through equity (Rs.1.42 billion) and term loans from banks.
"The FCCB issue, of which already $14 million is subscribed, will speed up the progress of our Raichur project. We envisage another FCCB issue shortly to fund the future expansion of the company," SIL managing director Dinesh Surana told reporters here Tuesday.
"The bonds will be converted into equity at the rate of Rs.140 a share. Our EPS currently pegged at Rs.20 will touch Rs.30 very soon," he said.
SIL has achieved a turnover of Rs.7.78 billion in last fiscal with a profit of Rs.300 million after taxes.
The expansion would augment the annual turnover by at least 60 percent, Surana added.