Vedanta group flagship Sterlite Industries has commenced
an American depositary shares (ADS) issue to raise around
$2 billion for funding expansion plans, including buyouts.
The company will offer 125 million shares with a green
shoe option of 18.75 million shares.
issue price will be on basis of the company''s share
price in India, which closed around $13.65 on June 1.
At this rate, Sterlite would be able to mop up around
$1.96 billion (about Rs8,000 crore).
ADS price would not be more than five per cent or less
than 10 per cent of its India price, the company said
in a filing with the US Securities and Exchanges Commission.
offer, the shares will represent about 18.3 per cent
interest in Sterlite and the company has applied to
get the ADS listed on the New York Stock Exchange under
the symbol ''''SLT'''', Sterlite Industries (India) Ltd,
(SIIL) said in a release to the BSE.
Industries had in May 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.
company is also planning to acquire the remaining 29.5
per cent government stake in Hindustan Zinc Ltd, for
around Rs9,230 crore, from the proceeds of this offering.
The ADS proceeds may also be used for reduction of debt
of up to Rs689.3 crore ($150 million).
offer, the company is expected to have nearly 683 million
outstanding equity shares, with the Anil Agarwal-promoted
Vedanta Resources Plc owning about 62.8 per cent of
those shares, Sterlite said.
Lynch, Pierce, Fenner and Smith Incorporated, Morgan
Stanley and Co International Ltd and Citigroup Global
Markets Inc. were the underwriters and joint global
coordinators and book runners
for the ADS offering. Nomura Singapore is the underwriter
for public offering without listing in Japan. Sterlite
expects to allocate 11.5 million equity shares in the
form of ADS in that country.