Sterlite Industries are Indias largest non-ferrous metals and excavation company and are one of the fastest turning private sector companies. Listed on the BSE and NSE in India and is the First Indian Metals & A ; Mining Company to name on the New York Stock Exchange. Primary concern countries are Aluminium, Copper, Zinc & A ; Lead and Commercial Energy. Sterlite Industries started in 1986 as Sterlite Cables Limited, acquires the Shamsher Sterling Corporation, changes the name to Sterlite Industries ( India ) Limited.1988 Sterlite Industries makes an initial public offering of its portions on the Indian stock exchange and 2007 Sterlite Industries primary naming on NYSE in June 2007.
Sterlite Industries ( India ) Ltd. ( “ Sterlite ” ) believes that high criterions of corporate administration are critical to guarantee concern success. The Company has ever believed in carry oning its personal businesss in a just and crystalline mode and in keeping the highest ethical criterions in its traffics with all its components. Sterlite ‘s mission is to invariably reexamine its systems and processs to accomplish the highest degree of corporate administration in the overall involvement of all the stakeholders.
In instance of alteration in the Price Band, the Bidding Period will be extended for three extra working yearss after the alteration of the Price Band topic to the Bidding Period non transcending 10 on the job yearss. Any alteration in the Price Band and the revised Bidding Period, if applicable, will be widely disseminated by presentment to the Bombay Stock Exchange Limited ( the “ BSE ” ) and the National Stock Exchange of India Limited ( the “ NSE ” ) , by publishing a imperativeness release, and besides by bespeaking the alteration on the web sites of the Global Co-ordinators and Book Running Lead Managers ( “ GCBRLMs ” ) , Book Running Lead Managers ( the “ BRLMs ” ) and at the terminuss of the members of the Syndicate.
In footings of Rule 19 ( 2 ) ( B ) of the Securities Contracts ( Regulation ) Rules, 1957, as amended, this being an Issue for less than 25 % of the station Issue paid-up equity capital, the Issue is being made through the 100 % Book Building Process wherein at least 60 % of the Issue will be allocated on a proportionate footing to Qualified Institutional Buyers ( “ QIBs ” and such part the “ QIB Portion ” ) , provided that our Company may apportion up to 30 % of the QIB Portion, to Anchor Investors, on a discretional footing ( the “ Anchor Investor Portion ” ) . Further 5 % of the QIB Portion less the Anchor Investor Portion shall be available for allotment on a proportionate footing to Mutual Funds merely. The balance shall be available for allotment on a proportionate footing to QIBs and Mutual Funds, capable to valid Bids being received from them at or above the Issue Price. If at least 60 % of the Issue can non be allocated to QIBs, so the full application money will be refunded forthwith. Further, non less than 10 % of the Issue will be available for allotment on a proportionate footing to Non-Institutional Bidders and non less than 30 % of the Issue will be available for allotment on a proportionate footing to Retail Individual Bidders, capable to valid Bids being received at or above the Issue Price.
Hazard in relation to the Issue
This being the first public issue of Equity Shares of the Company, there has been no formal market for the Equity Shares of the Company. The face value of the Equity Shares is Rs. 10 per Equity Share and the Floor Price is [ 4 ] times the face value and Cap Price is 55,635 Cr. No confidence can be given sing an active or sustained trading in the Equity Shares or sing the monetary value at which the Equity Shares will be traded after listing.
The IPO Grading is assigned on a five-point graduated table from 1 to 5, with IPO Grade 5/5 bespeaking strong basicss and IPO Grade 1/5 bespeaking hapless basicss. For taking an investing determination, investors must trust on their ain scrutiny of the Issuer and the Issue, including the hazards involved. The Equity Shares offered in the Issue have non been recommended or approved by the Securities and Exchange Board of India ( the “ SEBI ” ) , nor does SEBI vouch the truth or adequateness of this Draft Red Herring Prospectus.
( 1 ) Company is sing a Pre-IPO Placement. If the Pre-IPO Placement is completed, the Issue size would be reduced by the extent of such Pre-IPO Placement, capable to a minimal Issue size of 10 % of the station Issue paid-up equity capital.
( 2 ) Company may apportion up to 30 % of the QIB Portion, to Anchor Investors on a discretional footing in conformity with the ICDR Regulations.
( 3 ) Allocation shall be made on a proportionate footing. Under-subscription, if any, in any class, except the QIB Portion, would be allowed to be met with spill-over from any other class or combination of classs at the discretion of the Company, in audience with the GCBRLMs, the BRLMs and the Designated Stock Exchange.
Registered Office: Bharat
Board of Directors
Composition of the Board:
As on 31 March 2008, Sterlite ‘s Board comprised of nine Directors. There are four booster Directors on the Board, including the non-executive Chairman and the Executive Vice-Chairman. The other two booster Directors are nonexecutive. In add-on, the Board has a Managing Director, a Whole-time Director and three Non-executive independent Directors
Global Co-ordinators & A ; Book Running Lead Managers
Book Running Lead Managers
As on 31st March 2010 | As on 31st March 2009
Beginnings of Fundss
1. Stockholders ‘ Fundss
Share Capital 168.08 141.70
Militias & A ; Surplus 22,100.00 13,898.14
2. Lend Fundss
Secured Loans 100.00 303.80
Unbarred Loans 5,222.20 3,526.24
3. Deferred Tax Liability ( Net ) 5,322.20 3,830.04 363.81 333.65
Entire 27,954.09 18,203.53
92,50,00,000 Equity Shares of Rs. 2 each 185.00 185.00
Issued, Subscribed and Paid up Capital
84,04,00,422 ( Previous Year 70,84,94,411 ) Equity Shares of Rs. 2 each to the full paid up 168.08 141.70
Less: Unpaid Allotment Money/Calls in Arrears ( other than Directors ) ( Current Year Rs. 11,790 )
( Previous twelvemonth Rs. 11,790 )
Entire 168.08 141.70
Rs. 24,410 Crore Consolidated turnover for 2009-10 – up by 15.4 %
Rs. 8,031 Crore PBIDT for 2009-10 up by 17.1 %
Rs. 5,409 Crore Net Net income for 2009-10
Rs. 37,012 Crore Shareholders ‘ fund base
Rs. 21,313 Crore Cash and Liquid investing
Rs. 46.79 Amalgamate EPS for 2009-10 on hypertrophied equity base
Dividend of Rs. 3.75 per equity portion of Rs. 2/- each for 2009-10
Cathode production – 334,174 metric tons
Highest of all time Domestic Gross saless – 206,150 metric tons
Announced enlargement programme of duplicating of Copper imposts smelting capacity to 800 ktpa with associated 160 MW confined power works
Achieved 1 mtpa capacity in Zinc-Lead
Record Annual Zinc and Lead mined metal production at 768,620 metric tons
Record Annual Zinc and Lead refined metal production at 650,038 metric tons
Silver production at 176,381 kgs
Highest of all time production of hot metal from BALCO works II smelter – 254,745 metric tons.
268,425 metric tons Aluminium production
267,802 metric tons Aluminium gross revenues
Highest of all time production of Rods -148,239 metric tons
Construction work on the 325 ktpa Aluminium smelter and 1,200 MW Captive Power works at BALCO come oning good.
The building work of the 2,400 MW Coal based Power Plant at Jharsuguda is come oning good.
Revived 1,980 MW Merchant Power Plant at Talwandi in Punjab province Coal linkages secured for all power workss.
Share Capital History of Sterlite Company
Date of allocation
No. of equity portions
Issue Price ( Rs. )
Nature of allocation
Accumulative equity portion capital ( Rs. )
Value ( Rs. )
( Cash, other than hard currency etc. )
February 2, 1995
Initial subscription to the Memorandum of Association
April 13, 1998
Pursuant to a stockholders declaration dated October 27, 2007, each equity portion of a face value of Rs. 100 was split into 10 Equity Shares of Rs. 10 each.
November 5, 2007
Conversion of 586,000,000, 0 % OFCDs
November 5, 2007
Conversion of 600,000,000, 0 % OFCDs
October 5, 2009
Allotment to bing stockholders
No. of Equity Shares
Percentage of shareholding
No. of Equity Shares
Percentage of shareholding
[ a-? ]
Sub Total ( A )
[ a-? ]
Mr. Navin Agarwal* #
Mr. Dwarka Prasad Agarwal #
Mr. Kuldip Kumar Kaura #
Mr. Din Dayal Jalan* #
Mr. Kishore Kumar #
Sub Total ( B )
Public ( C )
[ a-? ]
[ a-? ]
Entire Share Capital ( A + B+ C )
[ a-? ]
OBJECTS OF THE ISSUE
The objects of the Issue are to: ( 1 ) portion finances the building and development of the Jharsuguda Power Project and the Talwandi Power Project ( “ Identified Undertakings ” ) and ( 2 ) fund outgo for general corporate intents. The chief objects clause and objects incidental to the chief objects set out in our Memorandum of Association enable us to set about our bing activities and the activities for which financess are being raised by us through this Issue.
BASIS FOR ISSUE PRICE
The Issue Price will be determined by our Company in audience with the GCBRLMs, the BRLMs on the footing of the appraisal of market demand for the offered Equity Shares by the Book Building Process. The face value of the Equity Shares of the Company is Rs. 10 each and the Issue Price is [ 4 ] times of the face value at the lower terminal of the Price Band and [ 4 ] times the face value at the higher terminal of the Price Band.
Net incomes per Share ( “ EPS ” ) ( Standalone )
Gaining Per Share ( Face Value Rs. 10 per Equity Share )
Basic ( Rs. )
Diluted ( Rs. )
Year ended March 31, 2007
Year ended March 31, 2008
Year ended March 31, 2009
Six months ended September 30, 2009
Our Promoters and Group Entities
The Promoter of our Company is Sterlite Industries ( India ) Limited. Sterlite Industries acquired 99.99 % equity involvement in our Company on October 3, 2006 from Twinstar Infrastructure Limited, an attached company and Mr. Anil Agarwal, the laminitis of Vedanta Resources plc. Pursuant to portion purchase understandings, each dated October 3, 2006, for a entire consideration of Rs. 4,934,900.
Sterlite Industries ( India ) Limited ( “ Sterlite Industries ” ) Sterlite Industries was incorporated under the Companies Act on September 8, 1975 as aˆzRainbow Investment LimitedaˆY . Subsequently, the name changed to aˆzSterlite Cables LimitedaˆY and so its present name aˆzSterlite Industries ( India ) LimitedaˆY in 1986.
Sterlite Industries is engaged in the concern of fabrication of Cu cathodes, rods, sulfuric acid, phosphorous acid etc. The registered office of Sterlite Industries is situated at SIPCOT Industrial Complex, Madurai Bypass Road, T.V. Puram P.O. , Tuticorin 628 002, Tamil Nadu, India.
Sterlite Industries was engaged in the concern of power and control overseas telegrams, overhead power transmittal music directors and enamelled Cu wires. In 1990, Sterlite Industries diversified its activities by set abouting the industry of jelly-filled telecommunication overseas telegrams and a works was besides commissioned to industry of aluminium sheets and foils. Sterlite Communication Limited was merged with Sterlite Industries in 1996 in conformity with a strategy of merger. Pursuant to a subsequent strategy of restructuring, the telecommunication concern of Sterlite Industries was transferred to Sterlite Optical Technologies Limited as a traveling concern with consequence from July 1, 2000.
There has been no alteration in control or direction of Sterlite Industries in the last three old ages. The equity portions of Sterlite Industries are soon listed on the Stock Exchanges and its American Depositary Shares ( “ ADSs ” ) are listed on the New York Stock Exchange ( “ NYSE ” ) .
The shareholding form of Sterlite Industries as of September 30, 2009 is as follows.
Class of Shareholder
No. of stockholders
Entire No. of equity portions of face value Rs. 2 each
Entire No. of portions held in dematerialized signifier
( A ) Shareholding of Promoter and Promoter Group
( 1 ) Indian
Persons / Hindu Undivided Family
( 2 ) Foreign
Entire shareholding of Promoter and Promoter Group ( A )
( B ) Public Shareholding
( 1 ) Institutions
Common Funds / UTI
Fiscal Institutions / Banks
Cardinal Government / State Government ( s )
The Rationale behind traveling for the fund raising/ raising the capital construction through the signifier of Issued, Subscribed and Paid up Capital for the twelvemonth 2009 and 2010
1 ) Of the above equity portions:
( a ) 2,10,000 Equity Shares were allotted as to the full paid up pursuant to a contract without payment being received in hard currency before bargain back, extinguishment, subdivision and issue of bonus portions.
( B ) 32,19,73,026 Equity Shares of Rs. 2 each were allotted as to the full paid up Bonus Shares by manner of capitalization of General Reserve and Security Premium.
( degree Celsius ) 27,33,675 Equity Shares were allotted pursuant to strategy of Amalgamation without payment being received in hard currency before bargain back, extinguishment, subdivision and issue of bonus portions.
( vitamin D ) 40,99,400 Equity Shares were allotted as to the full paid upon transition of 50,000 Foreign Currency Convertible Bonds before subdivision and issue of bonus portions.
( vitamin E ) 12,49,92,080 ( Previous Year 7,56,78,479 ) American Depository Shares ( ADS ) portion stand foring 12,49,92,080 ( Previous Year 7,56,78,479 ) underlying equity portions.
2 ) Of the above equity portions, 45,31,23,492 ( Previous twelvemonth 40,69,61,874 ) equity portions ( including ADS ) are held by Company ‘s keeping Company and 2,56,13,400 ( old twelvemonth 2,63,17,719 ) by a fellow subordinate of the Company.
The above fund elevation activity has been proven really efficient and the company ‘s fiscal public presentation has been good overall.