India's leading metals and mining group Vedanta Resources was formally listed on the London Stock Exchange on Wednesday after it raised over $1 billion through its public issue in London.

"The response was to the tune of $3 billion - three times our target. We will be raising up to $1 billion," Anil Agarwal, chief executive officer of Vedanta Resources Plc, the holding company for several subsidiaries including Sterlite Industries (India) Limited, said at the listing ceremony.

Agarwal, who founded the company 20 years ago, said: "This marks the climax of my ambition to have my company listed on the London Stock Exchange. I am delighted with the success of this initial public offer of $3 billion."

Agarwal, who is also chairman and managing director of Sterlite and a director of Balco and Hindustan Zinc Limited, said the IPO proceeds would primarily be used to fund the Balco smelter expansion project worth $200 million and the Orissa Alumina Refinery Project (about $300-$400 million) and to repay debt.

"Our alumina project in India is now a reality. Our expansion plans for other plants throughout India are also a reality. We are truly a growth company in the UK and the market will reward us for delivering the results and delivering superior returns to our shareholders.

"For me, today is also a clear signal that India is on the move. India is opening up and I am delighted that Vedanta Resources and the London Stock Exchange are part of this vital momentum."

Clara Furse, chief executive of the London Stock Exchange, said Vedanta, whose public issue was over-subscribed three times, was the first Indian company to seek full listing on the London Stock Exchange.

It would join 445 other international companies from 60 countries. Besides, 18 Indian companies listed on the LSE had a turnover of £5.1 billion last year, she pointed out.

Vedanta's headquarters are based in the UK and they have principal operations throughout India, Queensland, Australia and Tasmania, Agarwal said. The company is an integrated producer of zinc and aluminium and is the leading producer in India.

The market capitalisation of Vedanta at the offer price is £1,115 million and the size of the offering was increased from 110 million to 130 million shares, with gross proceeds of pounds 507 million (plus 15 per cent of the Green Shoes) making it the second largest IPO on the LSE.

P Chidambaram, former finance minister is one of the non-executive directors of the company.

The Agarwal family, which owns just over 60 per cent of Sterlite will pass that stake onto Vedanta, which they own 100 per cent, a background note stated.

Agarwal said the listing in London was aimed at luring overseas investors to invest in India and give Vedanta access to the world's biggest market for future capital needs.