Gautam Chakravorthy, Bloomberg
New Delhi: Indiabulls Financial Services Ltd, an Indian brokerage part owned by steel billionaire Lakshmi Mittal, priced its $275 million (Rs1,126 crore) global depository receipt sale, the proceeds of which will be used in the consumer lending business.
The overseas shares will be sold at $13.06 apiece, Mumbai- based Indiabulls said in a statement to the Bombay Stock Exchange today. Each depository receipt will represent one local share, it said.
Lenders including Indiabulls strengthened their presence in India to benefit from the growth in the world’s fastest growing major economy after China. India’s economy is forecast to expand at 9.2% in the year to 31 March after growing at an average pace of more than 8% in the past three years.
“The funds will help meet our requirement for at least 18 months,” Indiabulls Director Gagan Banga said in a telephone interview in Mumbai.
Goldman Sachs Group Inc. and Merrill Lynch & Co. were hired as arrangers for the sale, Indiabulls said.
The company, which raised about $120 million from two of its earlier global depository receipt sales in 2005, has an option to raise a further $25 million by selling additional receipts to Merrill Lynch, according to the statement.
Indiabulls shares rose Rs6.35, or 1.1 percent, to Rs562 at 12:05 pm local time on the Bombay Stock Exchange.
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-0- May/10/2007 06:38 GMT