Rathi Bars IPO Opens For Subscriptiona

Iron and steel maker, Rathi Bars is open for subscription with an initial public offering (IPO) of 71.42 lakh equity shares with a face value of Rs 10 each at fixed price of Rs 35 per share to raise around Rs 25 crore. The issue would close on 23 October.

Promoters are going to dilute 44% of holding through this public issue. The company has a production capacity of 70,000 tons per annum and that will increase it to one lakh tons per annum.

The company has earmarked an investment of Rs 35 crore for purchasing and upgrading its equipment and other expansion plans. The public issue will fund the bulk of the expansion programme. The rest of the fund will come from internal accruals and debt market.