Technical Analyst E Mathew has suggested to buy Usha Martin to be sold tomorrow. The delivery call for the day has been given as the stock has performed well in an otherwise weak market.

The stock has gained above 3.0% at Rs 140.94, and it is expected to touch Rs 165 levels tomorrow. It has a good potential.

Usha Martin is planning to raise equity capital of Rs 3,350 million. The company plans to raise the funds through preferential allotment of upto 38.5 million warrants convertible into equity shares to its promoters, reports Business Standard.

The warrants would be convertible at Rs 87 each, including a premium of Rs 86 a share.

Within its overall borrowing limit of Rs 25 billion, the company is also seeking shareholder approval to borrow funds and to mortgage or lease the company`s properties from time to time.

The company’s board had earlier approved enhancing the scope of capital project from Rs 12,500 million to Rs 21 billion to cover enrichment and optimization of mineral resources, enhancing capacity for captive power generation and value added products.

The incremental expenditure of Rs 8,500 million was to be part funded by the preferential allotment of warrants over the next 18 months. The balance would be through debt and internal accruals.