Sterlite Industries to increase authorized share capital, to enter power business through Sterlite Energy

Sterlite Industries India Ltd has announced that the Board of Directors of the Company at its meeting held on November 15, 2006, has, subject to necessary approvals and applicable provisions of law, approved the following matters:

1. (a) Reclassification of the existing authorized share capital of the Company of Rs 150 crores divided into 60 crore equity shares of Rs 2/- each and 3 crore preference shares of Rs 10/- into Rs 150 crores divided into 75 crore equity shares of Rs 2/- each.

(b) Further increase in the authorized capital of the Company from Rs 150 crores to Rs 175 crores by creating an additional 12.5 crore equity shares of Rs 2/ each.

(C) Amendment of the Memorandum and Articles of Association of the Company consequent to the reclassification of and further increase in the present authorized share capital of the Company.

2. Issue, offer and allotment, in the course of an offering to, or by way of private placement with eligible investors including Qualified Institutional Buyers under the Securities and Exchange Board of India Disclosure and Investor Protection Guidelines (whether or not such investors are members of the Company), by way of circulation of an offering circular, prospectus, placement document and / or such other documents, writings, circulars or memoranda, foreign currency convertible bonds / global depositary receipts, American Depositary Shares / equity shares of the Company, par value Rs 2 per share, up to an aggregate of Rs 12500 Crores, including any green shoe option in relation thereto (Securities), in one or more tranches and on such terms and conditions as may be decided and deemed appropriate by the authorised persons of the Board at the time of issue or allotment, at their sole discretion, in consultation with their advisors appointed in this regard.

The Company has convened an Extra-Ordinary General meeting of the shareholders of the Company on December 11, 2006 to approve the above decisions of the Board.

3. The Company has filed a shelf registration statement on Form F-3 with the US Securities and Exchange Commission relating to a proposed offering of American Depositary Shares, or ADSs.

4. Payment of interim dividend @ Rs 4 per share (face value Rs 2 each) to all the shareholders of the Company whose name appears on the Register of Members of the Company on the Record date.

5. To set up a project to enter into the commercial energy business in India. The first phase of this project involves the setting up a 2400 MW green field power plant in Jharsuguda, Orissa at a total cost of $1.9 billion. The power business will be operated through Sterlite Energy Ltd (SEL), a wholly owned subsidiary of the Company.

Source : Equity Bulls

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