MUMBAI (Commodity Online): Sterlite Industries Ltd (BOM: 500900) lost ground on the Bombay Stock Exchange (BSE) today as the company raised USD 500 million in convertible notes.

Sterlite traded at Rs.818 down by 5.7% in the morning trading hours today. The weakness was mainly attributed to the rising concerns over equity dilution post issue of convertible notes.

Pay low, earn more through Commodity Trading Tips

The stock hit a high of Rs.831.35 and a low of Rs.790 so far during the day. The large-cap stock had outperformed the market in the past one quarter, surging 38.09% as compared to the Sensex's return of 20.64%.

On the New York Stock Exchange (NYSE), Sterlite Industries American depository share (ADS) tanked 10.5% to USD 16.62 Thursday, 15 October 2009. Each ADS is equal to one underlying equity share.

The notes are convertible into American depositary Shares (ADS) at USD 23.33 per share, Sterlite said. They carry a coupon of 4% and mature on 30 October 2014, Sterlite Industries India said in a statement. The present issue would result in about 12.75% equity dilution as Sterlite Industries India would have to issue 2.14 crore ADS on conversion of the notes.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook