Sterlite plunges 8.62% amid restructuring plans

Sterlite plunges 8.62% amid restructuring plans
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First Published: Wed, Sep 10 2008. 11 42 AM IST
Updated: Wed, Sep 10 2008. 11 42 AM IST
PTI
Mumbai: Shares of Sterlite Industries plunged over 8% in morning trade, continuing their downslide for the second day in a row following the announcement of restructuring plans for the group.
NRI-Anil Agarwal led Vedanta Resources had, yesterday, announced a reorganisation plan, under which Sterlite Industries will demerge its aluminium and energy businesses to Madras Aluminium Company Ltd (to be rechristened as Sterlite Aluminium).
While, Vedanta would transfer its 79.4% stake in Konkola Copper Mines to Sterlite Industries.
Sterlite Industries shares fell sharply by Rs49.65, or 8.62% at Rs526.05 after dipping to Rs525 on the Bombay Stock Exchange.
It had lost 7.50% in the previous session, the highest drop in a month.
Over 14.19 lakh shares were transacted on the stock exchange in first one hour of trading.
Marketmen said that the drop in the share price was mainly due to frantic selling by investors on concerns that the firm’s restructuring plan would increase its capital and lower earnings per share.
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First Published: Wed, Sep 10 2008. 11 42 AM IST