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Sterlite plans $250 mn UK listing
June 09, 2003 11:32 IST
Sterlite Industries plans to float up to 25 per cent stake in the company on the London Stock Exchange within the next two months, raising around $250 million.
The issue will value Sterlite at $1 billion and will be the most significant fund-raising in the London market this year.
The group, which is being advised by HSBC and JP Morgan, decided on Friday to go ahead with the flotation despite there having been no main market listings in London since last year.
Sterlite will be the first Indian metals company to have its primary listing in the UK.
Anil Agarwal, founder of Sterlite and owner of around 80 per cent stake, believes the company will achieve a higher valuation here than it does in India and that the business will benefit from having a better profile.
Sterlite is highly acquisitive and aims to become the largest non-ferrous metals group with sales of $5 billion by 2005.
The company has played a leading role in the Centre's sale of metals assets, prompting speculation that it could use the money raised in London to launch a bid for Nalco, the state-owned aluminium group due to be privatised later this year.
In March last year, Sterlite paid Rs 445 crore for a 26 per cent stake in Hindustan Zinc, a state-owned metals group.
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