Financial Daily from THE HINDU group of publications
Saturday, Dec 06, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 06, 2003 |
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Stocks Markets - Stock Markets Vedanta debuts on LSE at a small discount Our Bureau
Mumbai Dec. 5 VEDANTA Resources Plc, the holding company of the Aggarwal's Group's Sterlite Industries India Ltd, made its debut on the London Stock Exchange on Friday, with the shares quoting at a marginal discount from the offer price of 390 pence per share of face value of 10 pence. While the shares opened at a marginal premium of 399 pence, the scrip price touched a low of 376 pence and a high of 400 pence. It was trading at 376 pence at 8 p.m. IST, with the volume being 49.83 million shares. Vedanta Resources owns 55.2 per cent in the Anil Aggarwal-controlled Sterlite and 80 per cent in Madras Aluminium Co Ltd through its wholly-owned subsidiary Twinstar Holdings Ltd. Sterlite also owns 51 per cent of Bharat Aluminium Co (Balco) and 65 per cent of Hindustan Zinc Ltd (HZL). The company's IPO received good response from the global investors, as the issue was oversubscribed four times, with half the interest coming from the US investors. Investors from the UK accounted for 30 per cent of the demand and the balance came from the rest of the world. In the light of the good response, the size of the offering by Vedanta was increased from 110 million to 130 million shares. The gross proceeds of the global offer receivable by the company will be Pounds Sterling 507 million ($876 million) before the exercise of the Manager's Option. If the Manager's option were to be exercised in full, the gross proceeds would be Pounds Sterling 583 million (around $1 billion). Following the IPO, stock price of most of the Sterlite Group companies declined on Friday's trading. Sterlite Industries stock closed lower at Rs 1,460.60 compared to the previous closing of Rs 1,545.20 on the BSE. Hindustan Zinc stock too closed lower at Rs 109.80 compared to Thursday's closing of Rs 111.35. The share price of both these companies had almost doubled after Vedanta announced to list its shares on the LSE last month. Madras Aluminium stock too declined from Rs 219.70 to Rs 207.95.
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