India’s top aluminum producer, Hindalco has fixed the price of its rights issue at Rs 96 per share.

The Board of Directors of the company at its meeting has fixed the ratio of rights entitlement at three equity shares for every seven equity shares held by the shareholders. The company expects to raise USD 1.2 billon.

The fund will be used to repay a part of the $3.03-billion bridge loan, which the company had taken to acquire Canadian firm Novelis in February 2007 for an enterprise value of $6 billion.

The record date for the rights issue has been fixed as September 5.

Citigroup, Merrill Lynch, SBI Capital Markets, Deutsche Bank and ABN AMRO are advisors to the issue.