Ispat Industries on Monday said it has increased prices of its products by up to Rs. 3,000 a tonne.
The company also plans to raise around Rs. 700 crore in the near future to part finance the expansion projects.
“On an average, the increase is Rs. 2,500 per tonne with effect from April 1. Depending on the steel segments, the hike is between Rs 2,000 and Rs 3,000 per tonne,” Ispat executive director Anil Sureka told PTI.
He also said the financial numbers for the last quarter of the year will be better as sales were higher by five per cent in the last quarter of the just-concluded year compared to Q3 of 2009-10.
Ispat had registered sales of Rs 2,104.7 crore and net profit of Rs 18.9 crore in the Q3 of 2009-10 fiscal.
Mr. Sureka said the company would review the steel price next month as the industry was facing a cost pressure of about Rs. 5,000 per tonne taking into account increase in the prices of iron-ore and coking coal.
Ispat is also planning to raise around Rs. 700 crore in the near future to part finance some of the expansion projects that will lead to cost reduction.
He said the board had passed an enabling resolution to raise up to Rs. 500 crore by issuing equity-linked securities through private placement to qualified investors including institutional investors.
“In addition to it, the board also cleared issue of warrants and equity-linked securities not exceeding 5 per cent post-issue voting rights to promoters' group that could raise around Rs 200 crore for the company,” Mr. Sureka said.
Asked when the amount would be raised, he said it would be decided at a future board meeting after the company received all requisite approvals.
The U.K.-based Stemcor and steel major Ispat Industries have entered into a joint venture to set up a coke oven plant at the latter's unit near Mumbai at an investment of Rs. 900 crore. Another Rs. 900 crore was required for the three-million-tonne pelletization plant.