Mumbai: Sterlite Industries, the flagship of the Vedanta Group, said on 19 June it has priced its initial public offering of American Depositary Shares (ADS) at $13.44 each.
Calculated on the basis of this price, Sterlite would raise over $1.75 billion through the issue of over 130 million equities in the form of ADS.
“As India’s economy grows apace, the demand for a diversified range of metals and other commodities will increase,” DSP ML chairman Hemendra Kothari said.
Post-offering, the ADS represent around 18.9% interest in Sterlite. The company’s ADSs were approved for listing on the New York Stock Exchange under the symbol “SLT”, Sterlite Industries said in a communique to the Bombay Stock Exchange.
After this offering, the company would have around 689 million equity shares. The company granted the representatives an option to purchase up to an additional 19.5 million ADS to cover over-allotments.
“The share and percentage numbers above assume no exercise of this option,” Sterlite added.
In May, Sterlite Industries announced plans to raise $2 billion through ADS issue for acquisitions, increasing stake in subsidiaries and setting up a thermal coal-based power facility in Orissa for around Rs8,730.5 crore.
The company is also planning to acquire the remaining 29.5% ownership interest of the government in Hindustan Zinc Ltd, which would amount to around Rs9,230 crore through the proceeds of this offering.
The ADS proceeds may also be used for reduction of debt of up to Rs689.3 crore ($150 million).
The underwriters and joint global coordinators and book-runners for the offering are Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. International PLC and Citigroup Global Markets Inc.
Nomura Singapore Ltd is the underwriter for 1.15 crore equity shares it the form of ADSs in Japan, which were allocated to the Japanese offering from the global issue.