India's largest steel maker, SAIL on Wednesday said it plans to raise up to Rs 5,000 crore via private placement and the proceeds will be utilised for modernisation programmes, among others.
The state-run firm will seeks shareholders' nod for a special resolution at its annual general meeting next month, it said in a regulatory filing. SAIL will approach shareholders to allow its Board to make offer "to raise funds through private placement of Secured Non-convertible Debentures/Bonds of up to Rs 5,000 crore, during a period of one year from the date of this AGM...," the filing added.
Besides eligible investors, the firm will approach NRIs, FIIs, Venture Capital Funds, Foreign Venture Capital Investors, State Industrial Developments Corporations, Insurance Companies, Provident Funds, Pension Funds, Development Financial Institutions, among others.
Explaining the rationale, SAIL said: "The company has already spent about Rs 62,441 crore on expansion programme till April 30, 2016. In order to part finance the expansion programme, your company plans to borrow about Rs 5,000 crore during the next year."