Hindalco plans Rs 1000 cr issue

Calcutta, Aug 10: Hindalco Industries Ltd, the aluminium major belonging to the Aditya Birla group, plans to come out with an equity offering next year to part-finance its integrated aluminium complex in Orissa. The company, India’s largest private sector aluminium producer, is contemplating a rights- cum- public issue of around Rs 1,000 crore for its new division, which has been christened Aditya Aluminium.

Top Hindalco sources said: "We have decided to fund the Rs 10,000-crore project through a mix of internal accruals, equity issue and borrowings. While 50 per cent of the project cost will come from borrowings, the balance will be

funded through internal accruals and equity offering. We are closely examining the possibility of an equity issue in the next fiscal."

Besides, the company is also planning to raise Rs 1,500 crore through suppliers’ credit, and tap the international debt markets for around $150 million (Rs 525 crore). Hindalco has already approached Standard & Poor and Moody’s to obtain mandates for the overseas debt offerings, The project will also have 650 mw captive power plant.