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Updated: 30/10/2009 | 12:00 AM IST
Sterlite Industries spurts as unit files for IPO
Capital Market
Friday, October 30, 2009 (New Delhi)
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Meanwhile, the BSE Sensex was up 70.96 points, or 0.44%, to 16123.60.

On BSE, 4.67 lakh shares were traded in the counter as against an average daily volume of 7.81 lakh shares in the past one quarter.

The stock hit a high of Rs 808 and a low of Rs 763 so far during the day. The stock had hit a 52-week high of Rs 879.70 on 17 October 2009 and a 52-week low of Rs 195.05 on 21 November 2008.

The stock had outperformed the market over the past one month till 29 October 2009, falling 0.44% as compared to the Sensex 4.75% fall. It outperformed the market in past one quarter, jumping 20.12% as against 5.79% rise in the Sensex.

India's largest copper maker by sales has an equity capital of Rs 168.08 crore. Face value per share is Rs 2.

The current price of Rs 784.50 discounts the company's Q2 September 2009 annualised EPS of Rs 9.97, by a PE multiple of 78.68.

Sterlite Energy intends to use the net proceeds from the initial public offer (IPO) to partially finance the construction and development of power projects in Jharsuguda and Talwandi.

Sterlite Energy is engaged in the commercial power generation business and is currently developing two thermal power projects in India in Jharsuguda, Orissa and Talwandi, Punjab, with a combined proposed installed capacity of 4,380 megawatts.

Sterlite Industries' net profit fell 54.7% to Rs 209.51 crore on a 3.3% fall in sales to Rs 3616.41 crore in Q2 September 2009 over Q2 September 2008.

On a consolidated basis, the company's net profit declined 24.91% to Rs 958.85 crore on 7.7% fall in sales to Rs 6085.46 crore in Q2 September 2009 over Q2 September 2008. The company declared its results during trading hours on Thursday, 29 October 2009.

Sterlite Industries had on 16 October 2009 raised $500 million in convertible notes. The notes are convertible into American depositary shares (ADS) at $23.33 per share. They carry a coupon of 4% and mature on 30 October 2014, Sterlite Industries India said in a statement. The issue would result in about 12.75% equity dilution.

Sterlite Industries India had on 15 October 2009 unveiled plans to double copper smelting capacity at Tuticorin in Tamil Nadu to 8 lakh tonnes at a cost of Rs 2,300 crore. The facility would be one of the largest single-location custom copper smelter in the world, the company said in a statement. Apart from the smelter, Sterlite will set up a 160-megawatt (MW) captive power plant at the site. The company expects to commission the project by the middle of the calendar year 2011.

The project, which will be funded through a mix of debt and internal accruals, also includes refinery, and other associated facilities such as sulphuric acid plant and phosphoric acid plant.

Sterlite Industries India is India's largest non-ferrous metals and mining company with interests and operations in aluminum, copper, zinc and lead and power. Sterlite Industries' main operating subsidiaries are Hindustan Zinc for its zinc and lead operations; Copper Mines of Tasmania Pty for its copper operations in Australia; and Bharat Aluminum Company for its aluminum operations.

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