Hindalco Industries, the flagship company of the Aditya Birla Group, may ask for shareholder approval to raise $500 million (Rs 2,450 crore) in equity to finance its expansion plans, chairman Kumarmangalam Birla said on Friday.
The company, which is India’s biggest aluminium producer by sales, expects its alumina project in eastern India to start production by 2011.
“We have mandated banks for achieving the financial closure of Utkal Alumina, which is expected by October-November 2009,” Kumar Mangalam Birla told shareholders at the company’s annual shareholders’ meeting.
Hindalco’s Mahan aluminum project is expected to start production by July 2011 and land acquisition for the project would be over by the second quarter of the current financial year, Birla told shareholders.
“We are planning to mandate banks for the financial closure of this project,” he added.
“Metals producers Sterlite Industries and Hindalco will stay in focus on strong metal prices and on expectations for a US economic recovery,” said an analyst on condition of anonymity.
The Hindalco stock closed up 1.65 per cent at Rs 137.70 at end of trade Friday on the Bombay Stock Exchange.