Sterlite Industries Shines at NYSE
Sterlite Industries India bobbed up 4.89% to Rs 587.30 after its American depositary shares made a substantial debut on the NYSE. During the day, the scrip had touched a high of Rs 596.80 and a low of Rs 572.
On Bombay Stock Exchange, nearly 8.65 lakh shares were traded on the counter. In the preceding one quarter, the average daily volume in the stock was 2.53 lakh shares.
On 19 June 2007, the Sterlite Industries scrip had climbed up 2.84% to Rs 559.90, after it had received sanction for listing of its IPO of 130.44 million American Depositary Shares.
On its debut day on 19 June 2007, Sterlite Industries’ American depositary shares (ADS) closed 9.4% higher to $14.70 on the New York Stock Exchange (NYSE), as against compared its offer price of $13.44. The ADS are listed under the SLT symbol. Each ADS exemplifies the right to obtain one underlying equity share in the company.
The company priced its IPO of 130.44 million of ADS at $13.44 each. The ADS symbolize just about 18.9% interest in the company post-offering. After this, Sterlite Industries will have around 689 million equity shares outstanding.
On 5 June 2007, the company annunciated that it had filed with US authorities to raise up to $2.1 billion in an IPO of 125 million ADS.
The company would use the earnings of ADS issue for general business purposes that include capital expenditure and working capital, reduction of debt, and for possible acquisitions.
Sterlite Industries is a foremost maker of copper in India. It is a branch of Vedanta Resources, which is a London listed metals and mining major, with aluminum, copper and zinc operations in India and Australia.