Sterlite Industries to raise $1.5 billion through ADS issue

Mumbai, India: Sterlite Industries India Limited (NYSE:SLT) ("Sterlite") today announced that it has filed an automatic shelf registration statement with the U.S. Securities and Exchange Commission (the "SEC"), which is effective immediately. Pursuant to this, it is offerint to issue and sell, subject to market and other conditions, new equity shares in the form of American Depositary Shares ("ADSs") that is expected to result in gross proceeds of approximately US$1.50 billion (in addition, the underwriters have an over-allotment option equivalent to 15% of the offering size, excluding any portion of the offering allocated to Vedanta Resources plc ("Vedanta"), either directly or through a subsidiary of Vedanta) (the "Offerting").

Vedanta, a 61.7% shareholder of Sterlite, intends to subscribe for US$500 million of ADSs in the Offering, either directly or through a subsidiary, on the same terms and conditions as offered to the public.

Sterlite intends to use the net proceeds from the Offering for the further development of its power generation business in India, planned capital expenditures, planned and potential acquisitions and / or general corporate purposes.

J.P. Morgan Securities Inc. and Morgan Stanley & Co. International plc are acting as joint bookrunners for the Offering.

The stock was trading at Rs.573.50, down by Rs.55.15 or 8.77%. The stock hit an intraday high of Rs.650 and low of Rs.573.50.

The total traded quantity was 1619723 compared to 2 week average of 637134.

Source : Equity Bulls

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