Stock price goes up and down, but this debenture offering makes a great sense. It is a no brainer. Management knows what they are doing. They are worried about dilution of their shares as well.

You do not get any such loans in india at 4%!!! And, Rupee is appreciating. Convertible stike price is pretty reasonable to attract investors. It is almost 50% from here. If you think the offer is good, they go for it. It is not that great for me. It is just reasonable if you want to lock your money for 5 great years.


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Press Release
Source: Sterlite Industries (India) Limited
On 10:19 pm EDT, Thursday October 15, 2009
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Companies:Sterlite Industries India Ltd.STERLITE INDS (IND) LTD
MUMBAI, India--(BUSINESS WIRE)--Sterlite Industries (India) Limited (“Sterlite” or the “Company”) announces that it has priced its public offering (the “Offering”) of $500 million aggregate principal amount of Convertible Senior Notes (the “Notes”). The Notes are convertible into the Company’s American Depositary Shares (“ADSs”) at an initial conversion price of approximately $23.33 per ADS, subject to adjustment in certain events. The Notes have a maturity date of October 30, 2014 and will bear interest at the rate of 4.00% per annum.

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{"s" : "slt,ster.ns","k" : "c10,l10,p20,t10","o" : "","j" : ""} The Offering is expected to settle on October 29, 2009. Any change in the settlement date will be notified to investors through a press release which will be posted on the Sterlite’s website at www.sterlite-industries.com.

Sterlite intends to use the net proceeds from the Offering for expansion of its copper business with allied power plant, acquisition of complementary businesses outside of India and any other permissible purpose under, and in compliance with, applicable laws and regulations in India, including the external commercial borrowing regulations specified by the Reserve Bank of India.

Deutsche Bank Securities Inc. and Morgan Stanley & Co. Incorporated are acting as joint bookrunners for the Offering.

A registration statement on Form F-3 relating to these securities has been filed with and declared effective by the SEC. A prospectus supplement relating to the Offering has been filed with the SEC. The prospectus supplement, the registration statement, together with the prospectus contained therein, and documents incorporated by reference, including our Annual Report on Form 20-F for the fiscal year ended March 31, 2009, as amended by our Form 20-F/A, are available on the website of the SEC at www.sec.gov. A copy of the preliminary prospectus supplement and accompanying prospectus related to the Offering may also be obtained by contacting: