Hindalco Industries Rights Issue under subscribed, falls on underwriters

Hindalco Industries Ltd has announced that the Issue period of the proposed rights issue of 525,802,403 equity shares of the Company, pursuant to the filing of the letter of offer dated September 13, 2008 with the stock exchanges closed on October 10, 2008 (the "Issue").

As per the provisional data provided by the Registrar, Company has received a subscription of 55.967% of the Issue size, being 29,42,76,155 equity shares in the issue. Pursuant to the underwriting agreement entered into by the Company with ABN AMRO Asia Equities (India) Ltd, ABN AMRO Securities (india) Private Ltd, Citigroup Global Markets India Private Ltd, Deutsche Equities India Private Ltd, DSP Merrill Lynch Ltd, State Bank of India, ("Underwriters") and SBI Capital Markets Ltd, dated September 12, 2008, the Committee of the Board of the Company in its meeting held on October 15, 2008, has approved the issuance of a devolvement notice dated October 15, 2008 to the Underwriters, requiring the Underwriters to subscribe or procure subscription for equity shares aggregating to 17,89,46,010, at the price of Rs 96 per equity share, for an amount of Rs 1717.88 crores.

The details of individual development of each Underwriter are as follows:

1. Underwriter : ABN AMRO Asia Equities (India) Ltd and ABN AMRO Securities (India) Pvt Ltd.
- Number of Equity Shares being subscribed to : 3,57,89,202

2. Underwriter : Citigroup Global Markets India Pvt Ltd
- Number of Equity Shares being subscribed to : 3,57,89,202

3. Underwriter : Deutsche Equities India Pvt Ltd
- Number of Equity Shares being subscribed to : 3,57,89,202

4. Underwriter : DSP Merrill Lynch Ltd
- Number of Equity Shares being subscribed to : 3,57,89,202

5. Underwriter : State Bank of India
- Number of Equity Shares being subscribed to : 3,57,89,202.

The Board has also authorised the promoters to bring in any further undersubscribed portion of the Issue.

Source : Equity Bulls

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