Debt-laden steel maker Bhushan Steel on Wednesday said it will seek shareholders' nod to raise up to Rs 547.50 crore through private placement of shares to meet fund requirements of the company. The company will approach its shareholders with the special resolution at its annual general meeting scheduled later this month, it said in a regulatory filing. The filing further said the firm will seek shareholders' approval to authorise the Board to "create, offer, issue and allot 18,25,000 redeemable cumulative preference shares of Rs 100 each, to be issued at such rate not exceeding Rs 3,000 per share (including maximum premium of Rs 2,900 per share) for an aggregate amount not exceeding Rs 547.50 crore." Earlier this month, the city-based firm said Monnet Ispat and Energy Ltd has agreed 'in-principle' to sell its stake in Orissa Sponge Iron & Steel to Bhushan Steel.
However, no commercial terms and valuations have been finalised. In July, Bhushan Steel said Joint Lenders Forum (JLF) has agreed for restructuring of about Rs 30,000 crore loans for a tenure of 25 years under the RBI's scheme for long-term structuring of loans in line with cash flows. Shares of the company were trading at Rs 51.35 apiece, up by almost one percent in the afternoon trade at the BSE.
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