ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Grapco Granites

 IN THE CAPITAL MARKET Bellary Steels and Alloys BELLARY STEELS AND ALLOYS (BSAL) is entering the capital market with a public issue of 18,00,000 equity shares of Rs 10 each at par amounting to Rs 1.80 crore. SBI Mutual Fund will subscribe to 3,00,000 equity shares on a firm allotment basis. BSAL was set up in 1986 for the manufacture of mild steel ingots through electric arc furnace with an installed capacity of 18,000 TPA. The company's plant was commissioned in a record time of nine months. Commercial production commenced shortly afterwards in March 1987. 100 per cent capacity utilisation was achieved in the very first year of operation. The present licensed and installed capacities are 50,000 TPA and 52,000 TPA respectively. To further modernise its facilities and increase the production capacity, the company is installing a ladle refining furnace at its plant. This will enhance the output quality and result in increased production and sales. The installed capacity will then rise to about 70,000 TPA. The proposed modernisation will result in substantial increase in the company's profitability. The total cost of the project is Rs 463 lakh which will be financed through term loan from financial institutions (Rs 75 lakh), non- convertible debentures (Rs 60 lakh) and internal accruals (Rs 148 lakh), in addition to the public issue of equity shares (RS 180 lakh).

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