Mumbai, July 31 (IANS) Aluminium maker Hindalco Industries plans to raise $500 million (around Rs.2,400 crore) through issue of securities, including global depository receipts (GDRs), in both international and domestic markets.
“In view of the volatility in the domestic market and developments in the international markets, the board has decided that the company in addition to offering of shares under the QIP (qualified institutional placement) route would explore the option to issue share under GDR,” the company said in a regulatory statement.

Hindalco has reported 79 percent rise in its net profit to Rs.480.5 crore for the quarter ended June 30, as against Rs.696.7 crore in the like period last fiscal.

Three Indian companies have raised over $2 billion in two weeks through the depository receipt route, strengthening the belief that foreign investors are once again looking at Indian companies.

While metals major Sterlite Industries raised $1.5 billion through American depository shares (ADSs) last week, steel maker Tata Steel raised $500 million through a global depository receipt (GDR) issue.

Wind energy company Suzlon has also announced plans to raise $108 million through the GDR route.

QIPs are capital raising tools through which companies allot shares or any other security to institutional investors to raise funds. The money raised is in rupee denomination.

ADS and GDR are negotiable securities listed on another country’s stock exchange. Subscription to the same gives the company funds in dollars or some other foreign currency.