Sterlite Industries (India) Ltd, a unit of Vedanta Resources plc, said it will sell shares in the US valued at about US$1.96 billion to help fund a new power plant in eastern India.
The company is building power stations in India for its own aluminium-manufacturing units. The Orissa power plant will likely be ready by 2010.
As many as 143.75 million American depository shares will be listed on the New York Stock Exchange, including an option for 18.75 million if demand is strong enough, Mumbai-based Sterlite said on Monday in a US government filing.
The price of the US shares will be determined by Sterlite`s stock in India, which was about US$13.64 on June 1, the company said.
Sterlite, a producer of copper, zinc and aluminium, hopes to tap US investor demand for emerging-market shares to finance a 2,400-megawatt, coal-fired power plant in eastern Orissa state that will cost about US$1.9 billion.
"We believe that with India`s large coal resources, ongoing government deregulation and high demand for power relative to supply, this business represents an attractive growth opportunity," Sterlite said on Monday.
India`s annual economic growth of more than 8% in the past four years has pushed electricity demand to exceed supply. The nation must add 70,000 megawatts of capacity in the next five years to ease a shortage, according to the power ministry.
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