Sesa Goa to raise Rs6,000 crore through multiple issues
25 September 2009
Mining firm and iron ore exporter Sesa Goa, owned by the Anil Agarwal-controlled Vedanta Group, today said that it would raise Rs6,000 crore through the issue of various securities in domestic as well as overseas markets.
The company plans to raise the amount through foreign currency convertible bonds, qualified institutional placements, global depository receipts, warrants or other securities.
A shareholders' meeting would be held on 20 October to consider the fund-raising, including an FCCB issue of $500 million (Rs2,400 crore), Sesa Goa informed the Bombay Stock Exchange.
Regarding the FCCB issue, the company said it has fixed the conversion price at Rs346.88 each. The proceeds from the FCCB would be used to expand mining operations and to further develop its pig iron and metallurgical coke operations.
The proceeds would be used in accordance with the external commercial borrowing regulations of the Reserve Bank of India, Sesa Goa said, adding that "they are intended to be used for financing the growth plans, including a rise in the mining capacity through organic and inorganic routes''.
The board has also approved a capital expenditure of Rs605 crore for increasing the capacity of its pig iron plant along with expansion of met coke plant and setting up a waste heat recovery power plant.
Early this month, the Supreme Court had allowed Sesa Goa to conduct its extraordinary general meeting for allocating preference shares to the London-based promoters Vedanta Resources Ltd.