| The Hindalco board, however, did not decide the price of the offer. Going by ratio of the offer and the size of the fund it aims, market sources said the issue would be priced at Rs 108-110 a share. |
| Chairman Kumar Mangalam Birla said in a media statement that, "The company is at the threshold of its next phase of growth, and the planned expansion would transform the company into a global scale metal producer." |
| Managing director Debu Bhattacharya said, "We have structured this investment keeping in view the phased funding need of the company and to provide investors with an option to pay in phases while continuing to participate in the growth of the company." |
| It has appointed JM Morgan Stanley Private and DSP Merrill Lynch as managers to the proposed issue. Amarchand & Mangaldas and Suresh A. Shroff & Co have been appointed as legal advisors. |
| The fund raised through the rights would be utilised for part financing various projects included in the company's expansion for which the company has an outlay of Rs 12,000 crore. |
| The expansion projects include brownfield expansion of its alumina facilities at Muri, Jharkhand from 110,000 tonne per annum to 4,50,000 TPA; and at Belgaum, Karnataka from 3,50,000 TPA to 6,50,000 TPA; brown field expansion of the aluminium facilities at Hirakud, Orissa from 65,000 to 1,46,000 TPA with captive power units. |
| The company is also setting up Aditya Aluminium - a fully integrated green aluminium complex in Orissa with an alumina capacity of 1 million TPA (expandable to 1.5 million TPA) and aluminium capacity of 2,60,000 TPA (expandable to 3,25,000 TPA). |
| Hindalco will also participate in 55 per cent equity investment in Utkal Alumina International Ltd, a joint venture company with Alcan Inc, for a 1-1.5 TPA alumina facility in Orissa. |
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