New Delhi: Aditya Birla Group firm Hindalco Industries, which recently acquired US firm Novelis, on Thursday received shareholders approval to raise up to Rs 2,600 crore through issue of securities to promoters.
Hindalco informed the BSE that shareholders have passed the resolutions for allotment of 6.75 crore equity shares on preferential basis to promoters.
The shareholders also gave their nod for issue of eight crore warrants to the promoter group, subject to necessary provisions and approvals.
After this decision promoters would by virtue of the shares immediately hike its stake in Hindalco to 32.67 per cent from 26.79 per cent at the end of December 31, 2006.
Once the warrants are also converted into equivalent number of shares, the promoter group's stake would go up by another six per cent to 38.67 per cent.
The company had earlier said the allotments of equity shares and warrants would fetch the company up to Rs 1,200 crore and Rs 1,400 crore respectively.
The relevant date for the purpose of determining the price for the preferential issue of equity shares and warrants would be 30 days prior to March 28, Hindalco had earlier said.
Hindalco last month agreed to acquire aluminium sheet maker Novelis for about $6 billion and said it would fund the deal through debt and equity.
The funds raised through preferential allotment to promoters is likely to be used for the transaction.
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