Hindalco to go for Rs 5,000 cr rights issue
Country's largest aluminium producer Hindalco on Friday said its board has approved rights issue for its shareholders up to Rs 5,000 crore to pay a bridge loan taken for acquiring Novelis.
By PTI |
MUMBAI: Country's largest aluminium producer Hindalco on Friday said its board has approved rights issue for its shareholders up to Rs 5,000 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 USD 6 billion.
Hindalco took a bridge loan of USD 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.
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"We have not decided on which one to opt for," Bhattacharya said. Start a SIP with as low as ₹500 with ET Money App!
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