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Ispat enters into tie-up with Stemcor Holdings Limited

Mumbai, Sep 16 (Calcutta Tube) Steel major Ispat Industries Thursday said it has entered into a Strategic Co-operation Agreement with international steel trader Stemcor Holdings Limited.

The company said that Stemcor will invest upto 10 percent in the equity, through preferential allotment.

‘There will be investment by Stemcor of upto 10 percent in the equity capital of our company, Ispat Industries Limited, through preferential allotment,’ the company said in a statement.

Stemcor will invest in setting up of one million ton capacity per annum coke oven plant, a 110 megawatt (MW) power plant as well as a 3 million ton per annum pellet plant.

According to the company, the international steel trader will also be investing about $75 million under an export securitization programme.

The company is said to be under Rs.65 billion of debt from financial lenders including, banks and insurance companies. Ispat’s scrip closed at Rs.20.30, down 2.9 percent in the Bombay Stock Exchange (BSE).

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