JTL Industries, on 19 December, announced that it had received approval from the board to invest Rs 1,310 crore in the company’s arm, JTL Tubes Ltd, for setting up a mega capacity augmentation project in Maharashtra.

To finance this said project, the company plans on raising around Rs 1,310 crore in various trenches, including but not limited to Qualified Institutional Placement (QIP).

Out of the overall fundraising, the promoter and promoter group of the company have pledged to contribute Rs 540 crore, whereas the public and non-promoters will contribute Rs. 270 Crore. The remaining Rs 500 crore will be gathered through the QIP issue.

In its regulatory filing, the company said, “The board of directors has approved the issue of securities by way of qualified institutions placement (QIP) for aggregate amount not exceeding Rs 500 crore in one or more tranches, including green shoe option.”

The state-of-the-art facility will harness the power of cutting-edge technology to enhance efficiency and diversify the product portfolio.

The company was formerly known as JTL Infra Ltd, and it is one of the largest producers of electric resistance welded steel pipes in India, with a capacity to produce more than 6 lakh metric tonnes per annum.