Hindalco inches up after conversion of warrants by promoters

Hindalco Industries rose 0.22% to Rs 114.50 at 13:59 IST on BSE after the company said that the promoter group companies have converted 15 crore warrants into equity shares at Rs 144.35 per share.

The announcement was made after market hours on Friday, 20 September 2013.

Meanwhile, the S&P BSE Sensex was down 422.32 points or 2.08% at 19,841.39.

On BSE, 2.8 lakh shares were traded in the counter as against average daily volume of 11.01 lakh shares over the past one quarter.

The stock was volatile. The stock rose as much as 1.35% at the day's high of Rs 115.80 so far during the day. The stock lost as much as 0.74% at the day's low of Rs 113.40 so far during the day. The stock had hit a 52-week low of Rs 83.05 on 7 August 2013. The stock had hit a 52-week high of Rs 137 on 2 January 2013.

The stock had outperformed the market over the past one month till 20 September 2013, surging 17.24% compared with the Sensex's 11.06% jump. The scrip had also outperformed the market in the past one quarter, jumping 16.94% as against Sensex's 8.25% rise.

The large-cap company has equity capital of Rs 191.45 crore. Face value per share is Re 1.

Hindalco Industries said that the committee of the board of directors of the company at its meeting held on Friday, 20 September 2013, has allotted 15 crore equity shares of Re 1 each at a premium of Rs 143.35 per share to promoter group companies subsequent to the promoters exercising warrants and paid the balance 75% of the purchase price.

It may be recalled that the company's board had on 22 March 2012 allotted 15 crore warrants on preferential basis to promoters group companies under Sebi (Issue of Capital & Disclosure Requirements) Regulations 2009 at Rs 144.35 per share. As per Sebi Regulation, the promoters had paid 25% of the purchase price at the time of allotment of warrants.

Hindalco Industries' net profit rose 11.6% to Rs 474.09 crore on 3.3% decline in net sales to Rs 5766.69 crore in Q1 June 2013 over Q1 June 2012.

Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location.

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