Bhagyanagar Metals to raise $30 m

A meeting of the company board has been convened for May 18 to take up the issue of authorisation for purchase of properties and issue of foreign currency convertible bonds (FCCBs) or some other appropriate instrument.

The Managing Director of Bhagyanagar Metals Ltd, Mr Narender Surana, told Business Line "the process of issue of convertible bonds will be finalised before July and we expect to announce the strategic overseas investor soon."

Mr Surana said, "Alongside this, we are in the process of finalising plans to sell a 11.75-acre prime land located at Uppal in Hyderabad to DLF Commercial Developers, a Gurgaon-based real estate company."

This is aimed at developing an IT SEZ. With the empowered group of ministers clarifying issues regarding SEZs, now there is no ambiguity in the SEZ scheme, he said.

"However, we would not like to disclose the value of the deal ahead of the board meeting," he said.

Investment plans

The company had restructured its operations earlier this year along specific business lines and also diversified into real estate development. As a part of this diversification plan, it has embarked on development of properties and has successfully bid for properties in Bangalore and Kolkata.

The board would also decide on the company'splans for investment of about Rs 300 crore to pave the way for acquisition of some properties and these could possibly go into creation of large malls and complexes, he said.

Shares of Bhagyanagar Metals ended the day at Rs. 86.50 as against the previous close of Rs. 82.40 on the NSE.

Taken from Business Line