Sterlite to raise $500 mn to fund expansion
Vedanta Resources group firm Sterlite Industries said it will raise $500 million from the American market to part finance expansion of copper business and business acquisitions.business Updated: Oct 16, 2009 20:34 IST
Vedanta Resources group firm Sterlite Industries said it will raise $500 million (over Rs 2,300 crore) from the American market to part finance expansion of copper business and business acquisitions.
The company has offered to sell senior notes, which would be convertible into American Depository Shares (ADS) which in turn are expected to result in gross proceeds of $500 million, Sterlite said in a filing to the Bombay Stock Exchange.
"Sterlite intends to use the proceeds from the offering for the expansion of its copper business with allied power plant and acquisition of complementary businesses outside of India...," the company said.
Following the announcement, shares of Sterlite plunged nine per cent over previous closing at Rs 790 on the BSE.
The offering is expected to close on October 29, 2009.
Deutsche Bank Securities Inc and Morgan Stanley & Co Incorporated are acting as joint bookrunners for the issue.