On 21 July Sterlite Industries, one of India’s largest non-ferrous metals and mining companies, with interests and operations in aluminum, copper, zinc and lead, closed a follow-on American depository share (ADS) offering at US$1.5 billion. The issue is the first ADS for an Indian company in two years. Its proceeds will be used to part-finance Sterlite’s power generation business in India, as well as for planned capital expenditure, potential acquisitions and general corporate purposes.
The offering is reported to be the largest equity sale in the US by a non-US company this year. Sterlite Industries’ ADSs are listed on the New York Stock Exchange and its shares are listed on the National Stock Exchange and Bombay Stock Exchange. The offering is a promising one in an environment where capital markets have suffered as a result of the global economic downturn.
“We’re seeing increased capital markets activity since the Indian elections, many qualified institutional placements and some recent global depository receipt deals, consistent with the general rise in the Indian stock markets,” Sandip Bhagat, a partner at S&R Associates, told India Business Law Journal.
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