Vedanta Resources, Sterlite Industries' holding company, has increased its stake in the company to 60 per cent from 55.1 per cent, through purchase of a 4.98 per cent stake from the market. | |
| The acquisition has raised Vedanta's stake in Sterlite Industries to 65.8 per cent owing to the additional 5 per cent stake that it owns in Sterlite, through its 80 per cent subsidiary Madras Aluminium Company. Madras Aluminum holds 7 per cent in Sterlite. |
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| Vedanta is aiming to take its share holding in the company to 75 per cent over a period of time. |
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| Senior Vedanta sources said, "The company's is looking at boosting attributable earnings through increase in ownership of Sterlite." |
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| Vedanta purchased 1.79 million shares of Sterlite at an Rs 1,477 a share. The Sterlite scrip today closed at Rs 1,402 per on the Bombay Stock Exchange. |
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| Vedanta had appealed to the Foreign Investment Promotion Board (FIPB) to increase the promoter's stake in Sterlite Industies from 55.1 per cent to 75 per cent and had been granted approval in November 2003 for the same. |
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| As per the takeover regulations, the promoters can increase their stake by a maximum of 5 per cent in a year. |
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| Anil Agarwal, the promoter of Sterlite, holds 52 per cent in Vedanta Resources, while the balance stake is floated on the London Stock Exchange. |
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| Vedanta Resources was the first Indian company to be listed on the London Stock Exchange, with an initial public offering of $1 billion. |
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| Sterlite had recently announced a 1:1 bonus issue of equity shares, followed by a 10:3 rights issue to bring the in the funds raised by the initial public. |
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| Sterlite has lined up expansion projects lined up worth $2 billion in Bharat Aluminium, Hindustan Zinc and its copper division. |
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