The Aditya Birla group's flagship firm, Hindalco Industries, is working out plans to issue global depositary receipts (GDR), cutting the size of its $500 million qualified institutional placement (QIP). The company aims to raise funds worth $500 million, in a bid to cover the losses it suffered on account of the decline in internal accrual.
Indian companies have raised funds from the global market from time to time, starting with the nation's biggest copper producer, Sterlite Industries, which raised $1.5 billion by selling shares in the US market. Tata Steel and Suzlon Energy too raised funds worth $500 million and 108 million respectively by issuing GDRs.
A Mumbai based analyst observed, "Following India's biggest stock rally in five years and the government's plan to boost infrastructure investments, the demand for shares of Indian companies is surging in developed markets. This essentially resulted in the success of GDRs."
Meanwhile, Hindalco, which requires Rs 25,000-30,000-crore for its capital expenditure till 2013, has reported a 31 per cent fall in net profit at Rs 481 crore during the first quarter, due to decline in metal prices and depreciation of the rupee.
- Microsoft has most partner friendly approach, says Satya Nadella
- Windows 9 will be free update for Windows 8 users
- Apple says vast majority of OS X users unaffected by 'Shellshock' bug
- Apple calls complaints of bent iPhones extremely 'rare' phenomenon in its defence
- Google Glass doesn't make texting safer behind the wheel