Sterlite Industries, part of the London-listed Vedanata Resources, on Wednesday raised $1.5 billion (about Rs7,200 crore) taking the ADR route. The move has revived hopes of similar offerings by other companies especially in the power sector.

The company has said it would use the funds – the first ADR for an Indian company in two years to part finance its power generation plans and other planned capex programmes. The break-up of the $1.5 billion the company has raised is - $500 million from parent Vedanta and $1 billion through institutional investors.

The company's move, according to analysts, is aimed at retaining its stake in Sterlite at 61.7 per cent.

The bookrunners to the issue were JP Morgan and Morgan Stanley. The issue was priced at $12.15 at a 6.1 per cent discount to the company's Wedenesday close.

Sterlite's ADS issue marks the launch of a serics of measures that would soon include acquisition of mining assets in Africa and Central America according to chairman Anil Aggarwal.

Sterlite's power plans would be built through wholly-owned subsidiary Sterlite Energy. The company is setting up two commercial power plants at Jharsuguda in Orissa and at another location in Punjab. The Jharsuguda plant has a capacity of 2,400 mw while the Punjab plant will generate 1,980 mw. The total investment is estimated to be in the region of Rs15,000 crore.

India's current generation capacity is 149,391 MW and a peak hour deficit of 12 per cent due to the huge surge in demand from industrial and retail consumers.

The government plans to add 78,700 MW during the five years to March 2012 to meet this demand. According to estimates India's annual growth rate of 8 per cent can be maintained only through addition of 20,000 MW generating capacity every year.

Sterlite Industries shares fell 6 per cent at Rs590.15 in a flat market and the stock traded down about 9 per cent in intra-day trade. The stock rallied before closing 6 per cent down.

According to analysts the ADR issue would enable Sterlite tap a broader investor base.

In another development, chairman Anil Agarwal said the group was ready to buy the out the government's residual equity in Hindustan Zinc.

According to reports, Agarwal will meet the finance minister in this regard. The group had acquired a 51 per cent stake in Balco at Rs551 crore and 64 per cent stake in Hindustan Zinc for over Rs750 crore during the tenure of the NDA government.

Government holds 49% in Balco and 29.5% in Hindustan Zinc.