SPS Steel mulls IPO route to fund expansion

Kolkata: SPS Steel & Power will be investing an additional Rs 450 crore in its Orissa project.

Bipin Vohra, chairman and managing director, SPS group said, post-expansion the company would have a total capacity of 584,000 tonnes.

The additional investments would be made for setting up a power substation, 12MW of power, increasing sponge iron capacity, railway siding, among others. The earlier plan was to have a sponge iron capacity of 220,000 tonnes, which would now be scaled up to four lakh tonnes.

The company also plans to go for an initial public offering (IPO) as part of its efforts to raise funds for a Rs 1,200 crore 250 MW power plant.

Vohra also announced that the company had acquired a sponge iron unit at Jharsuguda in Orissa for Rs 30 crore a steel division of Suraj Fabric in Himachal Pradesh.