Hindalco to raise $500 mn via GDRs; Q1 net at Rs 480 cr

Hindalco Industries, which posted a net profit of Rs 480.56 crore during June quarter, said today it is planning to raise funds up to $500 million (about Rs 2,400 crore) through issue of securities, including Global Depisitory Reciepts (GDRs) in the international or domestic markets.

"In view of the volatility in domestic market and developments in international markets, the board has decided that the company in addition to offering of shares under the QIP route would explore the option to issue share under GDR or any other instrument," Hindalco said in a filing to the Bombay Stock Exchange (BSE).

Earlier this month, the company had announced about the raising of $500 million through the issue of shares under qualified institutional placement basis in the domestic market.

In recent times, a host of Indian companies, including Tata Steel and Tata Power, have preferred to raise funds through the GDR route.

The flagship company of the Aditya Birla Group reported a net profit of Rs 480.56 crore for the first quarter ended June 30, while the same was at Rs 696.76 crore in the corresponding period a year ago.

Figures of the current quarter are not comparable with those of the corresponding quarter of the previous year, as the company has adopted new accounting systems, Hindalco said.

During the April-June period of the current fiscal (2009-10), total income of the company stood at Rs 3,974.81 crore, whereas the same was at Rs 4,862.19 crore during the June quarter last year.

Shares of Hindalco Industries today surged 6.65 per cent from its previous close and ended the day at Rs 100.20 on the BSE.