Copper market’s biggest whale fuels speculation of a major shift
The world’s single biggest buyer of copper, State Grid Corp. of China, has slowed its purchases of copper wire this year.
Vedanta Ltd., the Indian mining company controlled by billionaire Anil Agarwal, is seeking to raise about $1.02 billion through an upsized share sale to institutional investors.
Vedanta is offering about 193.2 million shares, up from 114 million previously, according to terms of the deal obtained by Bloomberg News. Shares of the company are being offered at a floor price of 440 rupees apiece, the terms show.
Vedanta is joining a slew of Indian companies tapping stock investors amid surging valuations and increasing demand for equity investments in the country. India has become one of the most active markets for equities capital markets in Asia this year, with proceeds raised by initial public offerings, blocks and placements surpassing Hong Kong and South Korea, Bloomberg-compiled data show.
The floor price in Vedanta’s share placement represents a 4.23% discount to stock’s closing price on July 15, the terms showed. The company is planning to use the proceeds to repay or pre-pay, in full or in part, certain outstanding company borrowings or those of one of its units, THL Zinc Ventures Ltd.
Citigroup Global Markets India Pvt., JM Financial Ltd. and Nuvama Wealth Management Ltd. are book-running lead managers in the offering.
(By Filipe Pacheco)
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