Adhunik Metaliks to raise Rs250-300 crore through IPO

Adhunik Metaliks Ltd, the specialty steel maker will raise Rs 2.5-3 billion through an initial public offering of shares in its mining subsidiary- Orissa Manganese and Minerals Ltd. It will sell 15 per cent stake in Orissa Manganese and Minerals Ltd in the share sale, to part-finance its Rs 11 billion pellet and ferro alloy plants.

These plants, which will convert iron ore fines into pellets and process low grade manganese ore waste, will be operational in 24 months. The first phase of expansion, OMML expects to mine 0.3 million tones of manganese and 0.4 million tones iron ore, which will be raised to 1 million tonnes and 3 million tonnes respectively by 2011.

JM Financial and Edelweiss are the book running lead managers for the issue.