Two Indian companies, including the country's largest private lender ICICI Bank, have raised over four billion dollars last week from the US market.ICICI Bank, in the biggest offering by an Indian company, raised $4.3 billion in a global follow-on issue, half of which was in the form of American Depository Shares.
The ADS issue of 42.14 billion, including a green shoe option of $0.32 billion, was priced at $49.25 each, translating into a price of about Rs 1,002.5 per equity share and representing a premium of about 6.6 per cent over the domestic issue price.Each ADS represents two equity shares of the Bank.
Earlier, Vedanta group's Sterlite Industries, a non-ferrous metal and mining firm, raised $1.75 billion through an initial public offering on the NYSE.Each ADS represents one equity share of the firm and the were priced at $13.44 each.
Combining ICICI Bank's 42.46 billion offer and 41.75 billion of Sterlite Industries India Ltd, the two firms have mopped up over four billion dollars from the US market.
Showing posts with label Sterlite Industries. Show all posts
Showing posts with label Sterlite Industries. Show all posts
Tuesday, June 26, 2007
Friday, June 22, 2007
Sterlite raises over 2 bn dlr in US
Vedanta group flagship Sterlite Industries on Friday said it has raised over two billion dollar (about Rs 8,215 crore) through an initial public offering in the US, including the over allotment option.
The American Depository Shares (ADSs) were priced at 13.44 dollar each, resulting in gross proceeds of 2,016 million dollar from the offering, the Anil Agarwal-led metals and mining company said in a communique to the Bombay Stock Exchange (BSE).The underwriters, joint global coordinators and bookrunners for the American Depository Shares (ADSs) offering exercised over allotment option to purchase additional 1.96 crore equity shares.
With the exercise of the over-allotment option, the total number of ADSs issued by the company in the offering increased to 15 crore and this would represent around 21.2 per cent interest in the company.The company on June 19 said it has raised 1.75 billion dollars (about Rs 7,000 crore) through the initial public offering in the US.
Read more in The Economic Times article.
The American Depository Shares (ADSs) were priced at 13.44 dollar each, resulting in gross proceeds of 2,016 million dollar from the offering, the Anil Agarwal-led metals and mining company said in a communique to the Bombay Stock Exchange (BSE).The underwriters, joint global coordinators and bookrunners for the American Depository Shares (ADSs) offering exercised over allotment option to purchase additional 1.96 crore equity shares.
With the exercise of the over-allotment option, the total number of ADSs issued by the company in the offering increased to 15 crore and this would represent around 21.2 per cent interest in the company.The company on June 19 said it has raised 1.75 billion dollars (about Rs 7,000 crore) through the initial public offering in the US.
Read more in The Economic Times article.
Tuesday, June 19, 2007
Sterlite prices ADS offering at $13.44
Sterlite Industries, the flagship of the Vedanta Group, said on 19 June it has priced its initial public offering of American Depositary Shares (ADS) at $13.44 each.
Calculated on the basis of this price, Sterlite would raise over $1.75 billion through the issue of over 130 million equities in the form of ADS.
Post-offering, the ADS represent around 18.9% interest in Sterlite. The company’s ADSs were approved for listing on the New York Stock Exchange under the symbol “SLT”, Sterlite Industries said in a communique to the Bombay Stock Exchange.
After this offering, the company would have around 689 million equity shares. The company granted the representatives an option to purchase up to an additional 19.5 million ADS to cover over-allotments.
In May, Sterlite Industries announced plans to raise $2 billion through ADS issue for acquisitions, increasing stake in subsidiaries and setting up a thermal coal-based power facility in Orissa for around Rs8,730.5 crore.
Read more in The Livemint article.
Calculated on the basis of this price, Sterlite would raise over $1.75 billion through the issue of over 130 million equities in the form of ADS.
Post-offering, the ADS represent around 18.9% interest in Sterlite. The company’s ADSs were approved for listing on the New York Stock Exchange under the symbol “SLT”, Sterlite Industries said in a communique to the Bombay Stock Exchange.
After this offering, the company would have around 689 million equity shares. The company granted the representatives an option to purchase up to an additional 19.5 million ADS to cover over-allotments.
In May, Sterlite Industries announced plans to raise $2 billion through ADS issue for acquisitions, increasing stake in subsidiaries and setting up a thermal coal-based power facility in Orissa for around Rs8,730.5 crore.
Read more in The Livemint article.
Tuesday, June 5, 2007
Hindalco shares rise 4% on takeover buzz
The Aditya Birla group-promoted Hindalco industries, the country’s largest aluminium producer, surged by about 4 per cent on the bourses to Rs 146.60 on market buzz that it could be a takeover target of the Alcan-Sterlite combine.
On a dull trading day, the scrip was the top gainer among the 30 Sensex stocks. It hit a day’s high of Rs 156.25, before profit-booking saw the counter shedding early gains.
The Birla Group holds about 30 per cent stake in Hindalco with foreign institutional investors (FIIs) and institutions holding 20 per cent and 12 per cent, respectively. About 10 per cent is in GDRs, while the remaining is with retail investors.
Sources in the Birla Group said the consolidation in the metal industry was taking place across the world where an identifiable promoter is not present. In Hindalco’s case, there is an identifiable promoter who holds 30 percent stake and would not sell under any circumstances.
Read more in The Business Standard article.
On a dull trading day, the scrip was the top gainer among the 30 Sensex stocks. It hit a day’s high of Rs 156.25, before profit-booking saw the counter shedding early gains.
The Birla Group holds about 30 per cent stake in Hindalco with foreign institutional investors (FIIs) and institutions holding 20 per cent and 12 per cent, respectively. About 10 per cent is in GDRs, while the remaining is with retail investors.
Sources in the Birla Group said the consolidation in the metal industry was taking place across the world where an identifiable promoter is not present. In Hindalco’s case, there is an identifiable promoter who holds 30 percent stake and would not sell under any circumstances.
Read more in The Business Standard article.
Sterlite`s $2 bn ADS to list in mid-June
Sterlite Industries is set to list its $2 billion (Rs 8,000 crore ) American Depository Shares (ADS) issue, the largest by any Indian company, with the New York Stock Exchange by the middle of this month.
Sources close to the development said the company would list the shares in the week beginning June 18. Road-shows for the issue, which will part-finance its plan to set up a power plant at an investment of Rs 12,500 crore, will begin towards the end of this week.
A team comprising Sterlite executives and representatives of its banks will visit Europe, the US, Hong Kong, Singapore and Japan to sell the issue. Merrill Lynch, Citi, Morgan Stanley and Nomura are bankers to the issue.
They added that the company would sell 125 million ADS under the book-built issue with a minimum price of Rs 531.84. The issue has the option to sell an additional 18.75 million shares, or 15 per cent of the issue, depending on the response.
Read more in The Business Standard article.
Sources close to the development said the company would list the shares in the week beginning June 18. Road-shows for the issue, which will part-finance its plan to set up a power plant at an investment of Rs 12,500 crore, will begin towards the end of this week.
A team comprising Sterlite executives and representatives of its banks will visit Europe, the US, Hong Kong, Singapore and Japan to sell the issue. Merrill Lynch, Citi, Morgan Stanley and Nomura are bankers to the issue.
They added that the company would sell 125 million ADS under the book-built issue with a minimum price of Rs 531.84. The issue has the option to sell an additional 18.75 million shares, or 15 per cent of the issue, depending on the response.
Read more in The Business Standard article.
Wednesday, May 30, 2007
Hindalco, Sterlite may join Alcan race
India's biggest aluminium maker, Hindalco, and Sterlite Industries, are in talks with global firms to separately bid for Canada's Alcan, said the media report on Wednesday. Citing unnamed sources, the report said Sterlite's parent Vedanta Resources Plc was in advanced talks with global miner Rio Tinto to form a special purpose vehicle to bid for the aluminium major.
London-based Vedanta will likely invest $3-$4 billion and Rio Tinto could put in $10-$12 billion in the joint venture, said the report.
Hindalco Industries Ltd, which earlier this year bought Canadian aluminium firm Novelis for $5.9 billion, was in talks with BHP Billiton for a joint bid but a deal was some distance away.
A Vedanta spokesman declined comment, while a spokeswoman for Hindalco said it was not the company's policy to comment on speculation.
Media reports earlier this week said Norwegian aluminium group Norsk Hydro and Rio Tinto might place separate bids to trump Alcoa's $28.5 billion hostile bid for Alcan, a takeover that would create the world's largest aluminium group.
London-based Vedanta will likely invest $3-$4 billion and Rio Tinto could put in $10-$12 billion in the joint venture, said the report.
Hindalco Industries Ltd, which earlier this year bought Canadian aluminium firm Novelis for $5.9 billion, was in talks with BHP Billiton for a joint bid but a deal was some distance away.
A Vedanta spokesman declined comment, while a spokeswoman for Hindalco said it was not the company's policy to comment on speculation.
Media reports earlier this week said Norwegian aluminium group Norsk Hydro and Rio Tinto might place separate bids to trump Alcoa's $28.5 billion hostile bid for Alcan, a takeover that would create the world's largest aluminium group.
Thursday, May 17, 2007
Govt to study call option validity for PSUs
The Cabinet Committee on Economic Affairs (CCEA) will take up tomorrow the issue of ‘survivability’ of the call-option provision of shareholders’ agreement entered into at the time of strategic sale of central public sector undertakings during 2000-03.
A call option gives the buyer the right, but not the obligation, to buy a specific futures contract at a pre-determined price within a limited period of time, in accordance with a shareholder agreement. The span of time for which the option is valid can be referred to as the ‘survivability’ period.
State-owned firms like Videsh Sanchar Nigam Ltd (VSNL), Paradip Phosphates Ltd (PPL), and Jessop and Company were divested between 2000 and 2003. The matter was referred to a group of ministers after the Department of Disinvestment sought legal opinion on the issue.
The Centre at present owns a 26.1 per cent stake in VSNL, 26 per cent in PPL, and 27 per cent in Jessop & Co Ltd.
The issue came into prominence after Sterlite Industries, which bought 51 per cent of Balco, wanted to exercise its call option under the shareholders’ agreement and tried to buy the residual 49 per cent stake.
A call option gives the buyer the right, but not the obligation, to buy a specific futures contract at a pre-determined price within a limited period of time, in accordance with a shareholder agreement. The span of time for which the option is valid can be referred to as the ‘survivability’ period.
State-owned firms like Videsh Sanchar Nigam Ltd (VSNL), Paradip Phosphates Ltd (PPL), and Jessop and Company were divested between 2000 and 2003. The matter was referred to a group of ministers after the Department of Disinvestment sought legal opinion on the issue.
The Centre at present owns a 26.1 per cent stake in VSNL, 26 per cent in PPL, and 27 per cent in Jessop & Co Ltd.
The issue came into prominence after Sterlite Industries, which bought 51 per cent of Balco, wanted to exercise its call option under the shareholders’ agreement and tried to buy the residual 49 per cent stake.
Tata Power signs $1 bn deal with Korean firm
Tata Power Company, which is developing India’s first 4,000 mw ultra mega power project (UMPP) in Mundra, today signed contracts reportedly worth $1 billion with Korea’s Doosan Heavy Industries & Construction Company for supply of super-critical boilers and development of ancillary civic structures.
The order, which includes five units of 800 mw each, comes about three weeks after the company formally took over the reins of the project in Gujarat, which is based on imported coal.
While the company has 64-69 months under the contract to commission the first unit, it expects to advance the schedules “ahead of the bid stipulation”. This means that the first unit would be commissioned within the 11th Plan period itself (2007-2012).
Tata Power bagged the Rs 16,000 crore Mundra project against competition from the likes of Sterlite, Adani, Essar, Reliance Energy and L&T by committing to supply power at the the lowest rate of Rs 2.26 a unit (a levelised rate for 25 years).
Read more in The Business Standard article.
The order, which includes five units of 800 mw each, comes about three weeks after the company formally took over the reins of the project in Gujarat, which is based on imported coal.
While the company has 64-69 months under the contract to commission the first unit, it expects to advance the schedules “ahead of the bid stipulation”. This means that the first unit would be commissioned within the 11th Plan period itself (2007-2012).
Tata Power bagged the Rs 16,000 crore Mundra project against competition from the likes of Sterlite, Adani, Essar, Reliance Energy and L&T by committing to supply power at the the lowest rate of Rs 2.26 a unit (a levelised rate for 25 years).
Read more in The Business Standard article.
Tuesday, May 15, 2007
Sterlite to raise $2 bn for power plant
Sterlite Industries (India), a unit of billionaire Anil Agarwal’s Vedanta Resources, plans to raise as much as $2 billion in its first share sale in the US to pay for a new power plant.
Sterlite, India’s largest copper producer, would sell shares that will trade on the New York Stock Exchange, the company said in a filing to the Securities & Exchange Commission.
By building a power plant, Agarwal is starting his second new venture three weeks after agreeing to pay $1.4 billion for 71 per cent of India’s biggest non-state iron-ore exporter. The response to the stock sale may show if he can achieve the goal of becoming one of the world’s top-five metals and mining companies.
Vedanta Resources, which owns 72 per cent of Sterlite, last month defeated rivals including Arcelor Mittal to buy Sesa Goa. The takeover gave the company its first iron ore mine in India, where steel demand is growing at almost twice the global average fuelled by the world’s second-fastest pace of growth.
Read more in The Business Standard article.
Sterlite, India’s largest copper producer, would sell shares that will trade on the New York Stock Exchange, the company said in a filing to the Securities & Exchange Commission.
By building a power plant, Agarwal is starting his second new venture three weeks after agreeing to pay $1.4 billion for 71 per cent of India’s biggest non-state iron-ore exporter. The response to the stock sale may show if he can achieve the goal of becoming one of the world’s top-five metals and mining companies.
Vedanta Resources, which owns 72 per cent of Sterlite, last month defeated rivals including Arcelor Mittal to buy Sesa Goa. The takeover gave the company its first iron ore mine in India, where steel demand is growing at almost twice the global average fuelled by the world’s second-fastest pace of growth.
Read more in The Business Standard article.
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