Financial Daily from THE HINDU group of publications
Thursday, Dec 25, 2003
Financial Daily from THE HINDU group of publications Thursday, Dec 25, 2003 |
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Bonus Announcements Corporate - Rights Issues Sterlite okays 1:1 bonus, 3:10 rights Our Bureau
Mumbai , Dec. 24 THE board of directors of Sterlite Industries (India) Ltd on Wednesday approved the issue of bonus shares in the ratio of one share for every existing one. Following the bonus issue, the company will also go in for a rights issue in the ratio of three new shares for every 10 existing shares of the expanded share capital, the company said in a press release after its board meeting today. The rights issue is aimed at raising Rs 1,400 crore, the company said. It is mainly to bring in part of the funds raised recently by Vedanta Resources, the holding company of Sterlite, through an initial public offering in the UK and the US. Vedanta Resources had raised $1 billion through the IPO to finance the group's $2-billion investment programme in aluminium, copper and zinc segments over the next three years. Sterlite has said a committee of directors will decide the rights issue price keeping in view the then prevailing market price. The bonus issue is expected to improve the liquidity of the stock, the company said. The one-for-one bonus issue will result in a doubling of the number of shares in issue and will be affected via capitalisation of the share premium account of Sterlite. The bonus issue will occur prior to the rights issue and is subject to shareholder approval. As on end September, the promoter holding in Sterlite is around 66.81 per cent, institutions 9.5 per cent, private corporate bodies 2.31 per cent and public 21.25 per cent. The company said it would send the offer document on the rights issue to SEBI shortly. The issue is expected to be completed by April 2004. Vedanta, through its subsidiary Twinstar Holdings Ltd, will fully support the issue of new Sterlite shares, the company said.
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