| The Sterlite board gave its approval for raising at least Rs 1,400 crore through the rights issue yesterday. |
| The money will be used to fund its expansion projects in group companies Bharat Aluminium Company (Balco) and Hindustan Zinc. |
| Sterlite's existing equity base of Rs 17.9 crore consisting of 3.59 crore paid-up equity shares of a face value of Rs 5 is expected to swell to close to Rs 47 crore, with around 9.33 crore paid-up equity shares after the rights issue. |
| Tarun Jain, director -finance, Sterlite Industries said, "A committee of directors is expected to decided the price of the rights issue according to the then prevailing market price." |
| The Sterlite scrip today closed at Rs 1,264.45 per share at the Bombay Stock Exchange. |
| Earlier, its global holding company Vedanta Resources had raised around $ 1 billion on the London Stock Exchange and holds around 55 per cent in Sterlite. |
| Apart from Vedanta, 7.1 per cent is held by Madras Aluminium Company and about 21.2 per cent by the Indian public. Sterlite has slated a total investment of around $2 billion over 3 years in 4 expansion projects. |
| The company will be investing $800 million for the expansion at Balco to take the installed capacity to 3.5 lakh tonne per annum and $800 million for setting up an alumina refinery in Orissa with a capacity of 1.4 million tonne per annum. |
| Out of the proceeds of the Vedanta IPO about $225 million will be utilised for Balco and $400 for the alumina refinery at Orissa. |
| Sterlite has also lined up $465 million for capacity expansion at HZL and about $100 million for its copper smelter. |
| HZL had raised about $125 million though the external commercial borrowings route for funding its capacity expansion. |
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