Hindalco plans to raise Rs 3000 cr through equity sale

MUMBAI: Aditya Birla group flagship company, Hindalco is planning to raise around Rs 3,000 crore through an equity sale to part fund its ongoing projects. Hindalco Chief Financial Officer S Talukdar said the company plans to raise the fund either through qualified institutional placement (QIP) or through sale of shares in overseas markets through the global depository receipts (GDR) route. He, however, did not specify timelines for raising the fund. The company has a capital expenditure plan of Rs 23,000 crore over the next three years, 70 per cent of which it plans to fund through debt. Rest of the financial requirement would be met by equity infusion and internal accruals, Talukdar said. Currently, expansion projects of the company are on track and production from new projects is expected to start by FY'11, Hindalco Managing Director Debu Bhattacharya said. "Production of alumina from Utkal Alumina refinery is expected to start around July 2011. The construction of 1.5 million TPA greenfield project at Rayagada, Orissa is in full swing," he said. The first metal from the smelter of the Mahan Aluminium project in Madhya Pradesh would also roll out by July 2011. It has a capacity of 3,59,000 TPA, Bhattacharya said, adding a captive 900 MW power plant is also coming up at Bargwan in Chhattisgarh.