Ankit Metal to expand through FCCB route

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Kolkata, May 15: Kolkata-based steel manufacturer Ankit Metal & Power Ltd, after financing partly its one lakh tonne steel plant per annum through a Rs 34.56 crore initial public offer last year, is now planning to take the foreign currency convertible bond (FCCB) or external commercial borrowing (ECB) route to part finance its expansion.

The company, having an integrated steel plant in Bankura producing 100,000 tonne per annum (tpa) of rolled products or TMT bars with captive sponge iron, MS billets and power units, is poised to double its capacity and set up another 300,000 tonne per annum capacity steel plant in Jamshedpur costing a total of Rs 1000 crore.

Ankit Patni, managing director, said setting up of the Bankura plant had cost around Rs 150 crore and doubling the capacity will cost Rs 200 crore.

For the 3,00,000 tpa Jamshedpur plant, the company will sign a memorandum of understanding with the Jharkhand government shortly. The company has sought 1000 acres for setting up the plant, Patni said.

He said investment requirement for setting up the Jamshedpur plant, which will produce structural steel and wire rods, will be to the tune of Rs 800 crore and a total of Rs 1000 crore investment will be made in three years with a debt equity mix of 70:30.

The company is planning to raise around Rs 200 crore through FCCB or ECB, Patni said.

Ankit Metal is also in a lookout for iron ore and coalmines in Iran and Indonesia and has already secured a coal mine in Indonesia.

Rohit Patni, joint managing director, said the coal mine in Indonesia has reserves of around 30 million tonne, while the iron ore mine has reserves of 4 m tonne with Fe content of 62%.