Biggest ever ADS issue by India Inc sees Sterlite raise $2bn

20 June 2007

Mumbai: Sterlite Industries, part of the London-based Vedanta Resources group, has raised over $2 billion through the listing of its American Depository Shares (ADS) on the New York Stock Exchange. The ADS is the biggest-ever overseas selling of shares by an Indian company.

The ADS, listed on the US bourse on Tuesday under ''SLT'' symbol, and was priced at $13.44 or Rs547.80 per share. The minimum price for the ADS, before the listing, was pegged at $13 per share.

Post the NYSE-listing, Sterlite Industries is now valued at $9.2 billion.

The underwriters for the Sterlite ADS issue were Merrill Lynch, Pierce, Fenner & Smith, Morgan Stanley and Citigroup Global Markets.

Post-issue, promoters'' holding will come down to close to 60%, from the current 79%.

The funds raised will finance the LSE-listed Vedanta group''s foray into energy sector, including the $1.9-billion greenfield power project in Orissa with a capacity of 2,400 MW and expansion of its aluminium and zinc facilities in the country.