Sesa Goa, part of Vedanta Resources, will increase its pig iron capacity to 375,000 tpy from 250,000 tpy, the company told the Bombay Stock Exchange.

Sea Goa also plans to increase its 280,000 tpy metallurgical coke capacity but did not give details.

The company board has approved a capital expenditure proposal of Rs 6.05 billion ($126 million) for the two projects.

The board has also approved the convening of an extraordinary general meeting on October 20 to seek shareholder approval to raise up to Rs 60 billion although it did not say why.

An official from the Vedanta Resources told MB that this is more of an enabling resolution to be used as and when there is a need to raise funds, for example, in case of an acquisition.

Meanwhile, Sesa Goa is proposing to raise $500 million through issuing foreign currency convertible bonds, a company press release said.

Proceeds from the offering will be used to expand the company's mining operations, explore for new resources and further develop its pig iron and metallurgical coke operations, it said.

The convertible bond issue will have a coupon of 5% per annum, payable semi-annually in arrears and will be convertible into company equity shares. The conversion price is to be Rs 346.88 per share, a premium of 28% to the reference price of Rs 271 per share.