Rathi Bars’ maiden float to raise Rs 25 cr

MUMBAI: The World Bank has estimated an annual investment of $60 billion in the Indian infrastructure sector. This has given steel majors, the biggest beneficiary of infrastructure development, a reason to scale up.

The latest to join the list is Rajasthan-based Rathi Bars Ltd, which plans to expand capacity from 80,000 tonnes per annum (tpa) to 1 lakh tpa.

To raise capital for the expansion and modernisation, Rathi Bars is tapping the capital market this month, hoping to raise Rs 25 crore.

The company’s initial public offering (IPO) will comprise 71,42,857 equity shares with a face value of Rs 10 and a premium of Rs 25 each. The issue will open on October 18 and close on October 23.

Rathi Bars currently manufactures steel bars used in the construction of multi-storeyed buildings, dams, bridges, flyovers and power plants as a basic reinforcement material. Its cold twisted deformed (CTD) and thermo mechanically treated (TMT) steel bars are categorised under long products.

Anurag Rathi, director, Rathi Bars, said the company enjoys a leadership position in the construction markets of north India and has been associated with a number of major projects and organisations, such as the Delhi Metro, National Thermal Power Corporation, DLF and Omaxe.

According to Rathi, the construction industry has witnessed tremendous growth over the last few years. With more funds being pumped into the sector, the demand for steel bars is expected to surge in the coming years.

Rathi said the company has recently introduced new technology to improve the quality and competitiveness of its steel bars. It also plans to add in-house production of low-carbon billets to further enhance the quality of its bars.

Rathi Bars has had two international technology tie-ups. The first is with Luxembourg-based TOR-ISTEG Steel Corporation, under which, it could incorporate technical specifications, technical know-how, production and quality control procedures apart from using research and development expertise.

The other tie-up is with Germany-based H&K Rolling Mill Engineers Pvt Ltd, under which Rathi Bars has the exclusive license to manufacture steel bars using Thermex technology - a technology to make the steel earthquake resistant.