Visa Steel, a part of the Rs 1,644 crore Visa group, is entering the capital market to finance a part of the capital expenditure for brownfield expansion of its existing manufacturing facilities.

The company is planning an integrated 0.5 million tonne special and stainless steel plant at Kalinganagar Industrial Complex in Orissa.

Visa is hitting the markets with an issue of 3.5 crore equity shares issue of Rs 10 each through the boom building route. The price band has been fixed between rs 52 and Rs 57 and the issue open on February 23 and closes on February 27.

The net issue to public would constitute 27.27 per cent of the post issue paid-up equity capital of the company.

The brownfield expansion includes setting up a 50,000 tonne ferro chrome plant, 300,000 tonne sponge iron plant, 50 MW waste heat recovery power plant and 0.5 million tonne special and stainless steel plant.

Addressing a press conference, Vishambhar Saran, chairman of Visa Steel said, "The Visa group has more than a decade long experience in the iron and steel industry with a global presence which has enabled us to understand the business and we are now leveraging this knowledge to set up manufacturing assets."

The company intends to focus on value added niche products such as special and stainless steel in order to cater to the increasing demand from the auto component, automobile, infrastructure and engineering sectors.