indiabusinessview (https://indiabusinessview.com/tag/hindalco/)
Aditya Birla-group metal firm Hindalco will raise Rs 2,900 crore through a qualified institutional placement route.
The company has determined the floor price for the share (face value: Re 1) at Rs 130.90 as prescribed by the SEBI formula.
The stock closed on the BSE at Rs 133.80 on November 23.
Earlier, Hindalco had increased the FII investment limit from 24% to 40%, and also raised the target amount from the QIP issue from Rs 2,400 crore to Rs 2,900 crore.
Hindalco Industries, a producer of aluminium and copper, announced relaxations in covenants of a $982mn loan taken by it to finance the acquisition of Novelis Inc., a Canadian aluminium producer. Hindalco had taken the loan in November 2008.
Restatement of accounts is quite uncommon in India. Even if Indian companies discover bloopers they are either rectified prospectively in the P&L or retrospective effect is given through the balance sheet. The first practice will reflect in future financial statements and the second will not reflect in the profit and loss account, thereby not affecting the profit for the year. US GAAP in contrast requires companies to restate their financial statements.