The Hindu Business Line : Usha Martin raises Rs 468.15 cr through QIP

Dr P. Bhattacharya, Joint Managing Director, told Business Line that the issue proceeds would improve Usha Martin's debt-equity ratio. “A 16.5 per cent equity dilution will maintain a low equity base. The ongoing expansion plan had increased the company's debt. This issue would balance out the ratio,” he added.

Twenty-five foreign and domestic institutions purchased shares through the placement with the top few investing between Rs 50 crore and 70 crore each. While institutional investors holding have gone up after the placement, promoters' stake has come down to around 40 per cent from 46.16 per cent.

The paid-up capital of the company increased to Rs 30.54 crore from Rs 25.09 crore.

During the third quarter to December 31, 2009, the consolidated net sales showed a decline 19.9 per cent to Rs 591.73 crore from Rs 738.33 crore in the corresponding period of last year. The consolidated PAT declined by 11 per cent to 34.78 crore.

Usha Martin stock closed at Rs 85.50, down 3.55 per cent, on the BSE.

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