Hindalco Industries skids on equity dilution concerns

Hindalco Industries skidded 6.47% to Rs 156.95 at 11:30 IST on BSE on equity dilution concerns after the company announced that board of directors will consider raising of funds by issue of equity related instruments.

The announcement was made during market hours today, 9 November 2016.

Meanwhile, the S&P BSE Sensex was down 947.46 points or 3.43% at 26,643.68.

On BSE, so far 7.72 lakh shares were traded in the counter as against average daily volume of 13.42 lakh shares in the past one quarter. The stock hit a high of Rs 163.40 and a low of Rs 151.05 so far during the day. The stock had hit a 52-week high of Rs 172.25 on 8 November 2016. The stock had hit a 52-week low of Rs 58.85 on 12 February 2016. The stock outperformed the market over the past one month till 8 November 2016, gaining 6.17% compared with the Sensex's 1.67% fall. The scrip also outperformed the market in past one quarter, gaining 12.54% as against the Sensex's 2.1% decline.

The large-cap company has equity capital of Rs 206.52 crore. Face value per share is Rs 1.

Hindalco Industries announced that a meeting of the board of directors of the company is scheduled on 12 November 2016 to consider among other items, approval of raising of funds by issue of equity shares, global depository receipts/American depository receipts/, foreign currency convertible bonds/, fully convertible debentures/partly convertible debentures/ preference shares convertible into equity shares, and/or any other financial instruments convertible into equity shares (including warrants, or otherwise, in registered or bearer form) and/or any security convertible into equity shares, combination of any of the aforementioned securities by way of one or more public and/or private offerings, qualified institutions placement and/or on preferential allotment basis or any combination thereof or any other method as may be permitted under applicable law, subject to such approvals as may be required.

Hindalco Industries' net profit jumped 381.3% to Rs 294.07 crore on 11.9% decline in net sales to Rs 7501.39 crore in Q1 June 2016 over Q1 June 2015. The company is scheduled to announce Q2 September 2016 results on 12 November 2016.

A part of the Aditya Birla Group, 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 amongst the largest single location custom smelter globally.

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