Kolkata-based B D Castings and Bishan Dayal Goyal & Sons, part of the steelmaking Goyal group, is in discussions with financial institutions for private placement.
Kailash Chand Goyal, one of the promoters, said that the company was looking to raise around Rs 150-200 crore through private placement.
At present closely held, dilution of promoters stake would be to the tune of 25-30 per cent in each of the companies.
Bishan Dayal Goyal & Sons is setting up a greenfield project at Birbhum in West Bengal.
Goyal said, in the first phase, the plant would have a finished steel capacity of three lakh tonnes, which would ramped up to 6.5 lakh tonnes in the second phase.
The total investment in the two phases would be around Rs 500 crore.
The company is in the process of purchasing land directly from the farmers. The land requirement for the project is 150 bighas in the first phase.
For its billet project under B D Castings, which would go onstream by December 2009, the company has bought 30 acres from West Bengal Industrial Development Corporation (WBIDC) and balance was being acquired from farmers.