Mumbai: Country’s largest aluminium producer Hindalco said its board has approved rights issue for its shareholders up to Rs5,000 crore to pay a bridge loan taken for acquiring Novelis.
The share ratio for the rights issue would be 1:3. For every one share held in Hindalco, its shareholders would be entitled to three equity shares, Hindalco MD Debu Bhattacharya told reporters.
“We are going for the rights issue to pay a bridge loan taken for Novelis acquisition,” he said. The price of the rights issue would be fixed at a later date by the board.
Last year, the Aditya Birla group company acquired Canadian aluminium maker Novelis for $6 billion.
Hindalco took a bridge loan of $3.03 billion for Novelis acquisition. The bridge loan has to be paid at the end of 18 months that comes to an end on November 10.
For the remaining part of the bridge loan the company would opt either for a domestic debt or an international debt or liquidation of its treasury.
“We have not decided on which one to opt for,” Bhattacharya said.