Hindalco proposes hike in FII limit to 40 per cent
15 October 2009
Hindalco Industries Ltd, flagship of the Aditya Birla Group, proposes to raise the investment limit for foreign institutional investors (FIIs) to 40 per cent subject to necessary approval of the shareholders.
The board of Hindalco Ltd while approving the hike in the FII investment limit also approved raising of long-term finance of up to Rs2,900 crore (up from the earlier target of Rs2,400 crore) by way of qualified institutional placement (QIP)/global depository receipts and / or other securities, with or without green shoe option.
The company has called an extra ordinary general meeting on 17 November 2009 for the purpose of approval of the aforesaid proposals.
Established in 1958, Hindalco Industries is one of the world's largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia.
The company commissioned its aluminium facility at Renukoot in eastern Uttar Pradesh in 1962 and later strengthened its position with the acquisitions and mergers of Indal, Birla Copper and the Nifty and Mt Gordon copper mines in Australia.
The acquisition of Novelis Inc in 2007 positioned it among the top five aluminium majors worldwide and as the largest vertically integrated aluminium company in India.
Today, Hindalco has a global footprint in 12 countries and a consolidated turnover of $15 billion (Rs60,012 crore).
Hindalco Industries has a 51 per cent stake in Aditya Birla Minerals, which has mining and exploration interests in the Nifty copper mines and the Mt Gordon copper project in Australia.