Information  X 
Enter a valid email address

Vedanta Resources (VED)

  Print      Mail a friend       Annual reports

Wednesday 24 December, 2003

Vedanta Resources

Sterlite Bonus & Rights Issue

Vedanta Resources PLC
24 December 2003

24 December 2003

Vedanta Resources plc

Sterlite Industries (India) Limited


Proposed Bonus and Rights issue by Sterlite Industries (India) Limited

Vedanta Resources plc ('Vedanta') is pleased to announce that the Board of
Sterlite Industries (India) Limited ('Sterlite'), an Indian listed subsidiary
company, has today approved the following proposals:

a)       The issue of bonus shares in the ratio of 1 new share for every 1
existing share

b)       Following completion of the bonus issue, a rights issue in the ratio of
3 new shares for every 10 existing shares of the expanded share capital to raise
at least INR 14 billion (c. USD300m). A Committee of Directors will decide the
rights issue price keeping in view the then prevailing market price.

Bonus Issue

The 1 for 1 bonus issue will result in a doubling of the number of shares in
issue and will be effected via a capitalisation of the share premium account of
Sterlite.  The bonus issue will occur prior to the rights issue and is subject
to approval by the shareholders. The intention of the bonus issue is to improve
the liquidity of Sterlite in the Indian capital market.  Earnings and dividends
per share will be adjusted according to the new number of shares in issue.

Rights Issue

The rights issue is expected to raise at least INR 14 billion (c.USD 300m) by
means of a 3 for 10 offer on the expanded share capital. A Committee of
Directors will decide the rights issue price keeping in view the then prevailing
market price.  The offer document will be sent to the Securities and Exchange
Board of India (SEBI) for approval and a further announcement will be made once
the rights issue price is finalised.  It is expected that the rights issue will
be completed early in the financial year commencing April 2004.

Vedanta will fully support the issue of new Sterlite shares. To this effect
Vedanta, which through its subsidiaries controls 62.3% of Sterlite's issued
share capital, has undertaken to take up its entire pro-rata entitlement under
the rights issue.

This initiative will advance Vedanta's stated strategy of applying the proceeds
raised in the London listing to fund its US$2 billion investment programme and
of releasing value contained in the current group ownership structure.

Background information

Through its wholly owned subsidiaries, Vedanta owns 55.13% of the issued share
capital of Sterlite. In addition, Vedanta controls/owns a further 7.13% of
Sterlite through Madras Aluminium Company Limited, an Indian listed subsidiary
company, of which Vedanta, through its wholly owned subsidiaries, holds 80% of
the issued share capital. These interests correspond to an effective interest of

                                   -  ends  -

For further information, please contact:

Peter Sydney Smith
Finance Director
Vedanta Resources plc

                                             Tel:  +44 207 629 6070

Andrew Lorenz
Jon Simmons
Financial Dynamics

                                             Tel:  +44 207 831 3113

                      This information is provided by RNS
            The company news service from the London Stock Exchange