Business Daily from THE HINDU group of publications
Friday, Oct 17, 2008
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Business Daily from THE HINDU group of publications Friday, Oct 17, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Markets
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Stocks Corporate - Rights Issue
Our Bureau Mumbai, Oct. 16 With a poor response from the retail and institutional investors, Hindalco Industries rights issue has finally devolved on the underwriters. The five underwriters including ABN Amro Asia Equities, Citigroup Global Markets, Deutsche Equities India, DSP Merrill Lynch and State Bank of India Ltd will now invest Rs 1,718 crore to acquire 17.89 crore shares at Rs 96/equity share. The shares of the company on BSE closed 12.5 per cent lower at Rs 69.75 on Thursday. SubscriptionAccording to the provisional data provided by the registrar, the company has received a subscription of 55.967 per cent of the issue size of 29.43 crore shares. “The issue has undoubtedly failed to attract retail and institutional participation as promoters were entitled to subscribe about 31.4 per cent of the issue and were willing to buy up to 50 per cent according to their underwriting agreement, besides GDR holders were entitled for 10 per cent of the issue,” said an analyst. The domestic institutions including Life Insurance Corporation and General Insurance Corporation hold 11.13 per cent and foreign institutional investors have 12.22 per cent. The company shares were battered in the recent meltdown of the capital market. “Hindalco stocks touched a four-and-a-half year low on Thursday with the news on devolvement of rights issue reached the market. Hindalco estimates poor response to rights issue, awaits details Hindalco rights issue price fixed at Rs 96 More Stories on : Stocks | Rights Issue | Hindalco Industries Ltd
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