Ashapura sells 20% via QIP route
Ashapura Minechem, the biggest player in the country's industrial minerals industry, has sold about 20% for Rs 150 crore to a clutch of foreign funds under the qualified institutional placement (QIP) route.
By Prince Mathews Thomas, TNN |
MUMBAI: Ashapura Minechem, the biggest player in the country's industrial minerals industry, has sold about 20% for Rs 150 crore to a clutch of foreign funds under the qualified institutional placement (QIP) route.
The money will be used to finance the company's expansion programme that includes the Rs 2,500-crore alumina project in Gujarat and processing units in Nigeria.
The institutional buyers include HSBC Global Investment Fund, Deutsche Securities, DSP Merrill Lynch, Standard Chartered Bank, Union Bank and Bank of India. "About 20% of the promoters' stake has been diluted," said a top company official. The promoters' held 52.2% as of March 31, '06. The company has initially planned for a global depository rights, but later settled for a qualified institutional placement, which were recently permitted by Sebi. The QIPs were introduced after Sebi was concerned that the Indian market was losing out to its overseas cousin, which was a preferred destination for Indian companies to raise resources.
The Rs 700-crore Ashapura Minechem will use the funds to part-finance its expansion programme and greenfield projects. ET had earlier reported that the decks were cleared for the Rs 2,500-crore alumina refinery project in Gujarat's Kutch district. The future of the project was left in doubt last year after the US-company Aluchem challenged Gujarat government's decision to award the project to the Mumbai-based Ashapura Minechem. The Indian company now plans to go ahead with the project.
The money will be used to finance the company's expansion programme that includes the Rs 2,500-crore alumina project in Gujarat and processing units in Nigeria.
The institutional buyers include HSBC Global Investment Fund, Deutsche Securities, DSP Merrill Lynch, Standard Chartered Bank, Union Bank and Bank of India. "About 20% of the promoters' stake has been diluted," said a top company official. The promoters' held 52.2% as of March 31, '06. The company has initially planned for a global depository rights, but later settled for a qualified institutional placement, which were recently permitted by Sebi. The QIPs were introduced after Sebi was concerned that the Indian market was losing out to its overseas cousin, which was a preferred destination for Indian companies to raise resources.
The Rs 700-crore Ashapura Minechem will use the funds to part-finance its expansion programme and greenfield projects. ET had earlier reported that the decks were cleared for the Rs 2,500-crore alumina refinery project in Gujarat's Kutch district. The future of the project was left in doubt last year after the US-company Aluchem challenged Gujarat government's decision to award the project to the Mumbai-based Ashapura Minechem. The Indian company now plans to go ahead with the project.
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