New Delhi, Apr 19 (PTI) Evonith Steel will utilize Rs 2,000 crore raised from the markets to refinance existing borrowings and support its growth plans, a company official said.
While Rs 1,750 crore will be used to pare debt, Rs 250 crore will be set aside to complete ongoing projects and adding new lines, the official said.
"We recently raised Rs 1,750 crore from Standard Chartered, JP Morgan, IDFC First Bank and others in fresh debt to refinance its existing borrowings and improving capital structure by reducing borrowing costs, extending debt tenure and enhancing financial flexibility," the official said.
The company also raised Rs 250 crore through Non-Convertible Debentures (NCDs) from HDFC Mutual Fund, in which JP Morgan India acted as the Structuring Advisor on NCDs.
The company is in process of completing Ductile Iron (DI) pipes project of 0.3 million tonne per annum (MTPA) capacity in Maharashtra and increasing coated steel production capacity from the 0.3 MTPA of CGL (continuous galvanising line) to 0.6 MTPA by adding BGL/ZAM (Bare Galvalume/Zinc-Aluminium-Magnesium) and colour coated lines.
In addition, they are also foraying into high-quality long products and putting up a 0.5 MTPA billet caster.
Jai Saraf, Chairman, Evonith Steel said: "By reducing our cost of capital and extending maturities, we are better positioned to invest in operational excellence, our current and future expansion. We remain focused on building a future-ready organization that creates value for all our stakeholders."
The company has spent approximately Rs 1,500 crore to enhance its iron and steel making capacity from 0.6 MTPA to 1.4 MTPA.