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Promoters hike stake in Hindalco industries to 37%
Edited by : AL CIRCLE
2 min read
The promoter group companies of the Aditya Birla Group have hiked their stake by nearly 5% in Hindalco Industries Ltd, the metals flagship company of the group and world’s largest aluminium rolling company.
The promoter group companies, controlled by group chairman Kumar Mangalam Birla, converted warrants into equity shares, taking their stake to 37% from the current 32.06%, entailing a total investment of Rs.2,165 crore.
According to market analysts, the capital infusion will help the company to reduce its debt. Hindalco Industries has a consolidated debt of Rs.56,906.08 crore as on 31 March, according to Mint research.
In a filing to the Bombay Stock Exchange, the company said it allotted 150 million warrants on a preferential basis on 22 March 2012 to promoter group companies at Rs.144.35 per share.
As per market regulator’s norms, the promoters had paid 25% of the purchase price at the time of allotment of warrants.
The company said that the promoters have exercised warrants and paid the balance 75% of the purchase price. The promoter group companies include IGH Holdings Pvt. Ltd, Turquoise Investments and Finance Pvt. Ltd, TGS Investment and Trade Pvt. Ltd and Umang Commercial Co. Ltd.
Hindalco Industries had reported a 11.6% rise in fiscal 2014’s first quarter net profit from a year earlier and said that it was re-evaluating its investments in two projects as demand for aluminium and copper remains bleak.
The promoter group companies, controlled by group chairman Kumar Mangalam Birla, converted warrants into equity shares, taking their stake to 37% from the current 32.06%, entailing a total investment of Rs.2,165 crore.
According to market analysts, the capital infusion will help the company to reduce its debt. Hindalco Industries has a consolidated debt of Rs.56,906.08 crore as on 31 March, according to Mint research.
In a filing to the Bombay Stock Exchange, the company said it allotted 150 million warrants on a preferential basis on 22 March 2012 to promoter group companies at Rs.144.35 per share.
As per market regulator’s norms, the promoters had paid 25% of the purchase price at the time of allotment of warrants.
The company said that the promoters have exercised warrants and paid the balance 75% of the purchase price. The promoter group companies include IGH Holdings Pvt. Ltd, Turquoise Investments and Finance Pvt. Ltd, TGS Investment and Trade Pvt. Ltd and Umang Commercial Co. Ltd.
Hindalco Industries had reported a 11.6% rise in fiscal 2014’s first quarter net profit from a year earlier and said that it was re-evaluating its investments in two projects as demand for aluminium and copper remains bleak.
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