SAIL stock closes higher on plans to modernise, expand

Shares of steel firm SAIL on Thursday rose by nearly 6 per cent after the company said it will press ahead with its modernisation programme and augment capacity in the current fiscal.

The stock gained 5.69 per cent to Rs 49.15 on the BSE. On NSE, it jumped 5.69 per cent to Rs 49.20.

Later, the stock closed 4.84 per cent higher on BSE. On NSE, the stock rose 4.94 per cent.

SAIL said on Wednesday it will spend Rs 7,500 crore on modernisation and expansion programme in the current fiscal ending March 2016.

The public sector undertaking (PSU) also said it will seek shareholders nod to raise Rs 5,000 crore through securities to part finance the plans.

So far, the 'Maharatna' company has invested over Rs 58,000 crore in its Rs 70,000 crore modernisation and expansion plan, which will augment the crude steel production capacity at its five steel plants to 23 million tonnes per annum (MTPA).

The company has taken up the massive programme of its plants as also for augmenting raw material supplies from its mines. The expansion programme has been decided to be funded through a mix of debt and equity, SAIL had said in a regulatory filing on Wednesday.