Mumbai, Maharashtra, India
Aditya Birla Minerals Ltd. (ABML), Hindalco's copper mining subsidiary in Australia has successfully completed an issue of 153.6 million new shares @ A$ 1.95 per share to raise a total of A$ 300 million. Post issue, Hindalco remains 51% shareholder in the company.
The proceeds of the issue would be used largely towards repayment of debt.Says Mr. D. Bhattacharya, Chairman - ABML and Managing Director - Hindalco, "ABML will become almost debt free and therefore the strong balance sheet may be appropriately leveraged for it to pursue further growth options in mining and other related areas."
The issue was subscribed to by Australian and international investors, constituting largely of institutions (approx: 75%) and the balance by retail broker firms on behalf of their retail clients. No offer was made to the general public.
The stock started trading on the Australian Stock Exchange (ASX) at 12.00 AEST (7.30am IST) and opened at A$3.66 which is 88% higher than the issue price. It reached an intraday high of A$ 3.73 before closing at A$3.19. Based on the closing price, the markets have valued the mining Company at A$998.5 million. The trade volume of 55 million shares represents around 33% of the free float.
ABML is the only "pure copper focused" listed company in Australia and the first Indian company listed on Australian Stock Exchange (ASX).
Currently the shares are trading on a deferred settlement basis. Trading on normal settlement basis is expected to commence on 16th May. The gap is due to the time required for the dispatch of holding statements etc. to investors.
UBS Investment Bank acted as the Lead Manager and Underwriter to the issue. UBS Wealth Management, Bell Potter Securities and Ord Minnett Securities were the Co-Managers.
Dr Pragnya Ram, Aditya Birla Group, +91 (22) 5652 5000 pragnyaram@adityabirla.com
Source: Hindalco Industries Limited (Business Wire India)
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