Hindalco plans new units, to invest Rs19,800 crore

India's largest aluminum producer Hindalco Industries on Friday said it would spend Rs 19,800 crore in the next three years to set up new aluminum facilities at various locations in the country. The company plans to spend Rs 6,000 crore in the current financial year itself. Hindalco, which plans to raise Rs 5,047 crore from selling rights shares, said the issue will open for subscription on Monday and close on October 10. The company will offer three shares for every seven held at Rs 96 a share. Hindalco shares rose 0.4 per cent to Rs 112.95 on Friday on the Bombay Stock Exchange. The Mumbai stock exchange benchmark Sensitive index gained 5.46 per cent to 14042 on Friday. “In future, it is unlikely that the share will be available at current prices,’’ Chairman Kumar Mangalam Birla told shareholders at the annual general meeting today while defending the rights issue price. The company also plans to raise $1 billion loan to part-finance the $3.03-billion bridge loan, it took nearly 18 months earlier to acquire Canada’s Novelis. The loan will be raised through AV Minerals, its wholly owned subsidiary in the Netherlands. The remaining funds will be met through internal accruals. Hindalco is raising the loan at an attractive rate of 7.5 per cent, said Kumar Birla. Addressing the shareholders’ meet Birla said that the aluminium maker is looking to set up facilities in Orissa, Madhya Pradesh and Jharkhand. The company is expanding its annual capacity at Muri alumina refinery in Jharkhand to 450,000 tonnes by the year-end from 110,000 tonnes. The company is also increasing smelting capacity at Hirakud in Orissa to 143,000 tonnes by this month end from 100,000 tonnes. Integrated aluminium project Aditya Aluminium, which comprises of 1,500 kilotons per year alumina refinery, 359 kilotons per annum smelter and 900 MW captive power plant, is also on schedule for completion. Source: business-standard