SAIL shares end 5 per cent higher on plans to modernise, expand

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Mumbai | Published: September 3, 2015 5:19:21 PM

Shares of steel major SAIL on Thursday ended with nearly 5 per cent gains after the company said it will press ahead with its modernisation programme and augment capacity in the current financial year.

SAIL Shares of steel major SAIL on Thursday ended with nearly 5 per cent gains after the company said it will press ahead with its modernisation programme and augment capacity in the current financial year. (Photo: Reuters)

Shares of steel major SAIL on Thursday ended with nearly 5 per cent gains after the company said it will press ahead with its modernisation programme and augment capacity in the current financial year.

The stock ended the day 4.84 per cent higher at Rs 48.75 on BSE. Intra-day, it surged 6.45 per cent to Rs 49.50.

At the NSE, shares of the company gained 4.83 per cent to Rs 49.65.

The company’s market valuation rose by Rs 928.1 crore to Rs 20,134.10 crore.

In terms of volume, 7.93 lakh shares of the company changed hands at BSE and over 30 lakh shares were traded at the NSE during the day.

SAIL said on Wednesday that it will spend Rs 7,500 crore on modernisation and expansion programme in the current fiscal ending March 2016.

The public sector undertaking (PSU) also said it will seek shareholders nod to raise Rs 5,000 crore through securities to part finance the plans.

So far, the Maharatna company has invested over Rs 58,000 crore in its Rs 70,000 crore modernisation and expansion plan, which will augment the crude steel production capacity at its five steel plants to 23 million tonnes per annum (MTPA).

The company has taken up the massive programme of its plants as also for augmenting raw material supplies from its mines. The expansion programme has been decided to be funded through a mix of debt and equity, SAIL had said in a regulatory filing on Wednesday.

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