Hindalco to raise $500 mn through GDRs; Q1 net at Rs 480 cr

Last Updated: Friday, July 31, 2009 - 19:59

Mumbai: Hindalco Industries, which posted a net profit of Rs 480.56 crore during June quarter, said on Friday it is planning to raise funds up to 500 million dollars (about Rs 2,400 crore) through issue of securities, including Global Depisitory Reciepts in the international or domestic markets.
"In view of the volatility in domestic market and
developments in international markets, the board has decided
that the company in addition to offering of shares under the
QIP route would explore the option to issue share under GDR or
any other instrument," Hindalco said in a filing to the Bombay
Stock Exchange (BSE).

Earlier this month, the company had announced about the
raising of 500 million dollars through the issue of shares
under qualified institutional placement basis in the domestic

In recent times, a host of Indian companies, including
Tata Steel and Tata Power, have preferred to raise funds
through the GDR route.

The flagship company of the Aditya Birla Group reported a
net profit of Rs 480.56 crore for the first quarter ended June
30, while the same was at Rs 696.76 crore in the corresponding
period a year ago.

Figures of the current quarter are not comparable with
those of the corresponding quarter of the previous year, as
the company has adopted new accounting systems, Hindalco said.

During the April-June period of the current fiscal
(2009-10), total income of the company stood at Rs 3,974.81
crore, whereas the same was at Rs 4,862.19 crore during the
June quarter last year.

Shares of Hindalco Industries today surged 6.65 per cent
from its previous close and ended the day at Rs 100.20 on the

Bureau Report

First Published: Friday, July 31, 2009 - 19:59

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