Hindalco Industries plans to raise $500 million through GDRs

Hindalco Industries, India's largest aluminium manufacturing company, which has posted a fall of 31% in net profit at Rs 481 crore in the first quarter of the current fiscal, is exploring the Global Depository Receipts (GDR) option to raise $500 million in addition to providing shares under the QIP route. The board is exploring the GDR option in view of the volatility in domestic markets. Subdued commodity costs and a steep decline in aluminium and copper LME resulted in a fall in the overall sales income and, therefore, profitability of Hindalco Industries. Net sales and operating incomes at Rs 3,899 crore was turn down by 16% in the first quarter. The company said that its performance is commendable comparative to peers in aluminium and copper industry sections. On early adoption of Accounting Standard (AS)-30, Hindalco told that figures of the current quarter are not comparable with the quarters of the last year. It has decided for early adoption of AS 30 on financial instruments, in so far as it associates to accounting, from April 1, 2009. As a result, net loss growing on reasonable valuation of outstanding derivatives as on April 1, 2009 has been adjusted against general reserve following transitional provisions. Of the total incomes of about Rs 3,899 crores in the first quarter, aluminium business added Rs 1,421 crore, as compared to Rs 1,943 crore in the same period of the last fiscal. The 50% fall in LME in the first quarter levels broke down topline as well as the bottom-line. This was partly offset from gains from weaker rupee, higher volumes and improved product/geographic mix. Shares of Hindalco Industries, on Friday, closed at Rs 100.20, up 6.65% or Rs 6.25. The total quantity of shares traded was 6,436,876 on the BSE. source:www.webnewswire.com