Hindalco gets shareholders’ nod to raise Rs2,900 crore
November 18, 2009
Aditya Birla group company, Hindalco Industries Ltd, has said that it plans to raise Rs2,900 crore through qualified institutional placements (QIPs), global depository receipts (GDRs) or any other route to fund its expansion plans. The company, India's largest aluminium producer, said it received shareholder approval for the fund-raising at an extra-ordinary general meeting (EGM) held on Tuesday.
Hindalco's investors also passed a resolution to increase the limit of investment by foreign institutional investors (FIIs) to 40% from 24% in the company’s equity share capital.
Last month, the company's board of directors increased its fund-raising plan by Rs500 crore to Rs2,900 crore.
The company has a capital expenditure plan of Rs23,000 crore for the next three years. About a third of it, about Rs7,500 crore, is to be funded by equity infusion and internal accrual.
The capital expenditure involves ongoing projects such as production of alumina from the Utkal Alumina refinery which is scheduled to start around July 2011. The construction of a 1.5 million tonnes per annum project at Rayagada, Orissa, is also in full swing. The Mahan Aluminium project in Madhya Pradesh, with capacity production of 359,000 tonnes per annum, is also expected to start production by July 2011.
For the quarter to end-September, the aluminium producer reported a 52% fall in net profit to Rs344 crore as sales declined 15% to Rs4,970 crore, from the same period last year.