Hindalco’s Rs 2,500 cr rights issue in 1:4 ratio

Aditya Birla group firm Hindalco Industries has announced a rights issue aggregating Rs 2,500 crore to partly finance its expansion projects.

The company’s board of directors approved the issue of equity shares and announced a 1:4 share ratio, which translates into one right of Re 1 each for every four equity shares of Re 1 each held by the shareholders as on the record date. “The price per share for the rights issue would be decided by the board and announced at a later date as may be agreed with the relevant statutory authorities,” the company said in a release.

Hindalco said as per the instrument approved by the board, 25 per cent of issue price shall be payable as application money, another 25 per cent between 9 and 12 months from the date of allotment and the balance 50 per cent between 18 to 24 months from the date of allotment. The board also approved the draft letter of offer placed before it.