IFC to invest Rs120 cr in Usha Beltron

By siliconindia   |   Wednesday, 11 September 2002, 19:30 IST
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International Finance Corporation (IFC) announced on Wednesday that it will invest Rs 120 crore in Usha Beltron Ltd (UBL), the flagship company of Usha Martin Group of Kolkata.

NEW DELHI: Dimitris Tsitsieagos, director, South Asia region, IFC, and B K Jhawar, chairman, UBL, signed the financial arranagement here to this effect. Of this amount, Rs 17.5 crore is equity participation. This would entail fresh issue of 5.35 million equity share at a price of Rs 33 per share (premium of Rs 28 for each share of Rs five), Jhawar was quoted as saying by a news agency. On increased equity of Rs 35 crore, IFC would hold 14.5 per cent of the paid up capital and the promotors 31 per cent, according to agencies. UBL is setting up a project for the manufacture of Direct Reduced Iron (DRI) with a capacity of one lakh tonnes a year and 7.5 MW co-generation power plant at Jamshedpur, he said. Tsitsiragos said the Usha Martin Group has demonstrated capability in scaling the operations to compete successfully in the global markets. On the expected turnover of the group this year, Jhawar said it would be almost the same as of last year at Rs 922 crore. It earned a profit before tax of Rs 8 crore during the last fiscal. UBL, the fifth largest rope manufacturer in the world, has plants at Ranchi, Jamshedpur, Silvassa, Agra and Banglore and in the U K and Thailand