Vedanta Raises Rs 4000 Crore Via Bonds Issue (02-Mar-2010)
Vedanta Resources has raised Rs. 4,000 crore through issue of convertible bonds in Europe.
As of now, this was the largest issue of convertible bonds in Europe, despite investors such as the Church of England and Norway''s state pension fund selling their stakes on concerns that its subsidiary, Vedanta Aluminium, had not respected human rights enough in the process of establishing an integrated aluminium smelter in Orissa.
A company official said with this issue, the group has brought in close to Rs. 23,000 crore of FDI in the country in the current financial year.
Vedanta Resources in May had raised $1.25 billion through convertible bonds, followed by Sterlite''s $1.6-billion fund raising through American Depository Receipts (ADR). Besides this, Sterlite again raised $500 million through foreign currency convertible bonds in July, followed by Sesa Goa''s $500 mn of FCCBs. And now, $883 mn (Rs. 4,000 crore) has been raised by Vedanta Resources.
The official said part of the fund raised will be utilised for the ongoing projects of Vedanta Aluminium in Orissa.
Meanwhile, the bankers to the issue were JPMorgan Cazenove and Morgan Stanley. The notes were issued at coupon of 4 % and have a 37.5 % premium for conversion at today''s market price.
Vedanta Aluminium has lined up investment plan of Rs. 36,000-crore in order to increase its fully integrated aluminium smelting capacity (in Orissa) to nearly 2.6 mn tonnes per annum (mtpa) by 2012. After completion, the company is expected to become Asia''s largest integrated producer of aluminium. It will also become one of the top 5 producers worldwide.
By the end of the current financial year, the company is expected to commission the 2nd phase of a 500,000 tonne-per-annum aluminium smelter, with a 1,215-Mw captive power plant, at Jharsuguda (Orissa). Earlier in 2007, it commissioned a 1.4-mtpa Greenfield alumina refinery project and an associate 90-Mw captive power plant at Lanjigarh (Orissa).
Vedanta Resources also has its aluminum business under Bharat Aluminum Company (BALCO) and Madras Aluminium Company (MALCO). Group Company Sterlite Industries acquired a controlling stake of 51 % in BALCO from the Union government in March 2001.
However, the company is in arbitration talks with the government for the buy-out of the residual stake of the government in the company.
Meanwhile, Sterlite Industries is planning to invest around Rs 650 crore to set up a power plant at Tuticorin in Tamil Nadu. Chief operating officer of the company, Ramesh Nair said one of the major challenges for the company at its Tuticorin unit, which manufactures copper smelter, was power.
Prominently, the proposed 2X60 mega watt coal-based plant would help the company to reduce the dependency and would also bring down the consumption cost.
Sterlite Industries India Ltd has posted a net profit of Rs 465.90 million for the quarter ended December 31, 2009 as compared to Rs 2040.10 million for the quarter ended December 31, 2008. Total Income has decreased from Rs 27781.20 million for the quarter ended December 31, 2008 to Rs 38830.80 million for the quarter ended December 31, 2009.
Top News Today
 Godrej Properties, Mumbai based real estate developer launched its new residential project Godrej Alpine in Mangalore. It aims to complete 499-apartment Godrej Alpine for occupation in 36 months. Godrej
 Mahindra & Mahindra, auto major has stopped the second phase of booking for its latest sports utility vehicle XUV500. It has received over 25,000 orders in a period of 10 days from January 25 to February
 Reliance Power, the Anil Ambani group company's 2,400-MW Samalkot plant in Andhra Pradesh is likely to be ready for electricity generation this fiscal. It will install six gas turbines at the plant having
|
International Stock News
 The US markets rose on Monday, sending the Dow industrials to their highest close since 2008, as Greece's government made progress on measures to secure international aid. Also, a Labor Department report
 The US markets made a mix closing on Thursday, as a drop in jobless claims fueled optimism about the economy and investors looked to the next day's employment report as the next indicator of the economic
 The US markets made a mixed closing on Tuesday, with the indices mostly slipping after US economic data failed to live up to expectation. The reports showed that American consumer confidence trailed estimates
|
|
|