Hindalco shares hit on rights issue plans
Shares of Hindalco Industries, flagship company of Aditya Birla Group, took a hit Monday after it said it may consider a comprehensive plan including an equity rights issuance to finance the loan taken to acquire leading aluminium-rolling company ...
By ET Online |
MUMBAI: Shares of Hindalco Industries, flagship company of Aditya Birla Group, took a hit Monday after it said it may consider a comprehensive plan including an equity rights issuance to finance the loan taken to acquire leading aluminium-rolling company Novelis.
At noon, the Hindalco share shed 2.2 per cent to Rs 171.50 with volume traded at 2,74,828 against two-week average of 5,15,931 shares.
In a filing to Bombay Stock Exchange on Friday, Hindalco said its board of directors will consider "a comprehensive financing plan for take out of the existing bridge financing for acquisition of Novelis," on June 20 meeting.
"This take out financing must be in place by November 10, 2008. The financing plan will evaluate various options including an equity rights issuance," Hindalco said.
Hindalco, India's largest aluminium producer had in February, last year, entered into a definitive agreement to acquire Novelis in an all cash transaction, which valued the target company at $6 billion.
At noon, the Hindalco share shed 2.2 per cent to Rs 171.50 with volume traded at 2,74,828 against two-week average of 5,15,931 shares.
In a filing to Bombay Stock Exchange on Friday, Hindalco said its board of directors will consider "a comprehensive financing plan for take out of the existing bridge financing for acquisition of Novelis," on June 20 meeting.
"This take out financing must be in place by November 10, 2008. The financing plan will evaluate various options including an equity rights issuance," Hindalco said.
Hindalco, India's largest aluminium producer had in February, last year, entered into a definitive agreement to acquire Novelis in an all cash transaction, which valued the target company at $6 billion.
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