Sterlite, Suzlon to raise over $1 bn

Sterlite, Suzlon to raise over $1 bn
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First Published: Wed, Jul 15 2009. 10 55 AM IST
Updated: Wed, Jul 15 2009. 10 55 AM IST
Mumbai: India’s Sterlite Industries and Suzlon Energy are gearing up to raise more than $1 billion within a month to finance their expansion plans and retire debt, the Economic Times said on Wednesday.
“Both the companies have recently organised foreign roadshows as a precursor to these issues,” the newspaper said, citing multiple sources close to the companies.
Metals producer Sterlite, a unit of London-listed Vedanta Resources, is planning to raise between $500 million and $1 billion through a fresh issue of shares, the paper said.
Last month, Sterlite obtained shareholder approval to raise funds through the issue of securities to institutions or through American or Global Depositary Receipts (ADRs or GDRs) or overseas convertible bonds.
JPMorgan is the advisor to the issue, the paper said.
Wind turbine maker Suzlon has decided to raise around $400 million through the issue of either ADRs or GDRs to retire debt, it said.
Deutsche Bank has been given the mandate for the share sale, which would see equity dilution of 10-15%, the paper said.
Last month, the company’s board approved raising up to $1.04 billion through the issue of equity, debt or other instruments.
Its chief operating officer, Sumant Sinha, told the agency in June that Suzlon aimed to look at selling assets and shares to lower its debt, which had quadrupled to $2.45 billion in the fiscal year ended March.
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First Published: Wed, Jul 15 2009. 10 55 AM IST
More Topics: Sterlite | Vedanta Group | Suzlon Energy | Power | ADRs |