International Finance Corporation (IFC), the private sector
financing arm of the World Bank, is investing Rs 120.5
crore in Usha Beltron Ltd (UBL), a steel wire ropes and
financial package drawn up between the IFC and UBL consists
of Rs 17.5 crore in the form of equity participation.
This entails a fresh issue of up to 5.35 million equity
shares at a price of Rs 33 per share (a premium of Rs
28 for each share with a face value of Rs 5 each). On
an increased equity of Rs 35 crore, IFC will hold 14.5
per cent of the paid-up capital. The balance of Rs 103
crore will be extended as a loan to the company.
infusion of the funds is part of UBLs Rs 252-crore
investment plan over the next three years to strengthen
its balance sheet, reduce the operating costs and increase
the capacity utilisation from 72 to 80 per cent. This
capital expenditure will include setting up a direct reduced
iron plant for backward integration and building a captive
co-generation power plant to produce power using cost-efficient
and environment-friendly technology.
global expertise in manufacturing has benefited us immensely
in focussing on our core business of steel wire ropes
and wires. In this long-term partnership with IFC, we
look forward to maintaining the best international standards
in corporate governance and environmental and social responsibilities,
says UBL chairman B K Jhawar.
has two main steel manufacturing facilities in Ranchi
and Jamshedpur. It also has manufacturing subsidiaries
in the UK and Thailand.