Birlas to raise stake in Hindalco

Aditya Birla Group chairman Kumar Mangalam Birla yesterday said that he plans to increase his promoter's shareholding in group company Hindalco Industries Ltd from open market purchases.

Speaking to Hindalco shareholders at the company's annual general meeting in Mumbai, he did not specify the timeframe or amount of stake that he wished to purchase.

According to Bombay Stock Exchange data, the promoter and promoter group had a 36.1-per cent stake in the copper and aluminium producer at the end of June.

Birla also said Hindalco is planning a capital expenditure of around Rs5,623 crore in the current financial year ending March and another Rs10,458 crore in the following year.

The company, which is currently working on three greenfield projects, will raise $500 million (Rs2,405 crore) through a qualified institutional placement of shares or other instruments. It has got shareholders' approval for the QIP.

The company has set a production target of 350,000 tonnes of copper for the current financial year on the back of demand from the fast-growing power industry.