Hindalco rights issue subscribed 56%

Hindalco rights issue subscribed 56%

Mumbai: Aditya Birla Group flagship firm Hindalco said its Rs5,000 crore rights issue has been subscribed 55.97% as of 10 October.

The company has received subscription of over 29.42 crore shares, representing 55.97% of the shares on offer, as per provisional data available with the registrar of companies, Hindalco said in a fling to the Bombay Stock Exchange (BSE).

As per the underwriting agreement entered into with ABN Amro, Citigroup Global, Deutsche Equities, DSP Merrill Lynch and SBI Capital Markets by Hindalco, the underwriters would subscribe to 17.89 lakh shares, aggregating to Rs1,717.88 crore.

Under the rights offer, Hindalco would issue 52.58 crore shares at a price of Rs96, which includes a premium of Rs95 each. The rights shares would be issued in the ratio three shares for every seven held by the shareholders.

The company, which is raising about Rs5,047.7 crore through a rights offering to existing shareholders, would utilise the proceeds to refinance $3.03 billion loans, it had taken from banks to fund its acquisition of Canadian firm Novelis for an enterprise value of $6 billion.

Shares of Hindalco were trading at Rs72.20, down 9.07% in the afternoon trade on the BSE.