Home / Business and Economy / Evonith Steel Secures ₹2,000 Cr for Debt Refinancing
Evonith Steel Secures ₹2,000 Cr for Debt Refinancing
19 Apr
Summary
- ₹2,000 crore raised to refinance debt and fund growth plans.
- ₹1,750 crore used for debt reduction, ₹250 crore for expansion.
- Capacity expansion includes DI pipes and enhanced coated steel production.
Evonith Steel has secured a significant ₹2,000 crore through market fundraising, primarily aimed at refinancing existing borrowings and supporting its ambitious growth plans. A substantial ₹1,750 crore of these funds will be dedicated to reducing overall debt, thereby improving the company's capital structure by lowering borrowing costs and extending repayment periods.
The remaining ₹250 crore is earmarked for the completion of ongoing projects and the addition of new production lines. This includes expanding its Ductile Iron (DI) pipe capacity to 0.3 million tonne per annum in Maharashtra and increasing coated steel production from 0.3 MTPA to 0.6 MTPA. Furthermore, Evonith Steel is venturing into high-quality long products with the addition of a 0.5 MTPA billet caster.
This strategic financial maneuver enhances Evonith Steel's operational flexibility and positions it for sustained investment in expansion and operational excellence. The company has already invested approximately ₹1,500 crore to increase its iron and steel making capacity from 0.6 MTPA to 1.4 MTPA, demonstrating a clear commitment to growth.
