Ispat business has decided to sell approximately 10% equity stake to UK-settled trading chief Stemcor for approx 250 crore to part-finance its development strategy. The Mumbai-settled steelmaker that has been discovering it hard to meet its financial promises and has also settled to a securitization program with Stemcor to hoist approx $75 million for the working capital needs.

The equity transaction with Stemcor through a preferential allotment that might be for the company's 3 million ton projected pellet plant, which is close to its Dolvi steel making plant. According to the contract, Stemcor will provide and construct a 110 megawatt power plant and the pellet plant. Pellets are built from iron ore and are important for any steelmaking procedures.

Keeping a rapt pellet plant is element of Ispat's program to curtail its costs, as it recently has to procure iron ore from the souk where prices have been unstable.

The Mumbai-pedestal Ispat, managed by Pramod Mittal and Vinod Mittal, has been jostling to finalize its payments on the `6,500 crore it be obligated to approx 15 lenders counting financial institutions and banks.