The steel and raw material producer, Bhuwalka Steel Industries Ltd (BSIL) announced that it has taken over 299,900 equity shares at a price of Rs 334 per share in Benaka Sponge Iron Pvt Ltd (BSIPL) in a cash deal of Rs 100.2 million.

Presently, BSIPL has 2 Kilns of coal based sponge iron plant having the capacity of 100 MT per day each.

The recent acquirement will give Bhuwalka the permission to produce steel via primary route by integrating the operations to perk up its margins. Besides, the company will have access to sponge iron to the tune of to 60,000 tonnes per annum.

Benaka has also decided to produce power through hot gas recovery for captive consumption by the group during the next phase.

It also plans to enter into green power generation by establishing a power plant with a capacity of 10-12 MW with waste heat as feed stock together with chardust (by-product) and coal.

During 2006-07, BSIPL had posted a turnover of Rs 40.21 crore with a profit after tax of Rs 2.02 crore. The company is estimated to post a turnover of Rs 59 Crores with a PAT of about Rs 2.80 Crores for the year 2007-08.

The shares of the Bhuwalka Steel Industries Ltd, on Thursday, ended at Rs 76.65, up 5.0% on the Bombay Stock Exchange (BSE).