Hindalco to go in for rights issue to payback bridge loan

Mumbai, Jun 20 (UNI) Leading aluminium producer of the country HINDALCO today declared that it would issue rights share on the basis of one share for every three held to raise funds to part finance the bridge loan of 3.03 billion it had availed for acquiring multinational Novelis in May last year.

Company Managing Director and Vice Chairman D Bhattacharya told newsmen here, while announcing the company's results for 2007-08, that HINDALCO would raise Rs.5000 crore throught he rights issue and the price of the share would be decided by the board and announced at a later date.

The bridge loan need to be paid back before November this year and every effort was being made to complete the formality, he said adding that besides the rights issue the balance amount would be raised through rising domestic and international debt financing and liquidation of treasury.

He said the Directors have approved a comprehensive financing plan for taking out the existing bridge financing facility for acquiring Novelis at six billion USD.

HINDALCO along with Novelis had in all 57 companies spanning all the five continents. Besides that Hindalco had six associate companies and two joint ventures. Mr Bhattacharya said the company believed in both organic and inorganic growth modes to emrge an aggressive player in the market.

Announcing the consolidated results, he said the total revenue stood at Rs.60,013 crore up by 211 per cent from last year. The aluminium business revenue was rs.47,054 crore, while the copper revenue was Rs.12,340 crore. The Profit after tax was Rs.2387,3 crore as against Rs.2685 crore earned the previous year.

On standalone basis Hindalco indian operations recorded a revenue of Rs.19,201 crore, reflectiong a growth of five per cent over the last year despite lower realisation on account of a stronger ruppe that resultted in a fall in EBITDA by eleven per cent. The net profit for hindalco standalone was Rs 2860.9 crore as against Rs.2564.3 crore earned the previous year. The mark to market loss due to trading in derivatives was Rs.22 crore.

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