Special Correspondent

CHENNAI: The over Rs. 250-crore turnover Nelcast, a maker of spheroidal graphite (SG) iron castings, is set to enter the capital market to part-fund its capacity expansion plan. The company is planning to raise the capacity to 1.50 lakh tonnes annually, up from the current 1.02 lakh tonnes. According to J. Joseph, Managing Director, the company had invested around Rs. 25 crore over the last couple of years to expand the capacity from 70,000 tonnes to the current level.

Addressing a press conference here on Tuesday, Mr. Joseph said the expansion would require an investment of Rs. 65 crore. The expansion would happen at its existing plants at Gudur in Andhra Pradesh and Ponneri in Tamil Nadu, Mr. Joseph said. He said the expansion could also see the company getting into the manufacture of some machining components. Even as it was readying to make an initial public offer, Nelcast had raised Rs. 3.10 crore through preferential allotment of shares to Hyderabad-based Menakuru Infrastructure Pvt. Ltd. at Rs. 155 per share of the face value of Rs. 10. The company's post-preferential allotment equity capital is Rs. 13.05 crore.