The Sterlite group, after having announced a demerger of its copper business from the main metals company, is planning separate international listing for the copper and aluminium companies.
The group is considering two options: the copper and aluminium companies could be listed separately or a holding company could be listed abroad.
"The company is considering both and a decision is yet to be taken," sources familiar with the development said.
Sterlite Industries last month said it would hive off the copper business into a separate company while retaining the aluminium conductor business, power transmission line and other non-metal related assets in the parent company. The copper company will come into being on April 1.
The move comes three years after a first round of restructuring, when the optic fibre business was spun off from the metals company to give both a clearer focus.
Sterlite refused to share details of its listing plans. In an e-mail to Business Standard, Tarun Jain, director (finance) at Sterlite, said: "The plans are in a nascent stage. The structure, quantum of finances and the possible exchanges have to be finalised. At present, it will be premature to comment."
Over the past two years Sterlite Industries has been expanding aggressively. It bought the divested government stakes in Balco and Hindustan Zinc, and is now eyeing Nalco.
The proceeds of the listing are likely to be used for funding Sterlite's contribution to the Rs 5,000 crore (Rs 50 billion) expansion plan for Balco.
"The copper business is expected to fetch a better valuation and that was the reason why it was spun off. The alternative plan of a holding company is being considered to attract investors who would like to invest in a diversified metals company.
"The problem with the earlier planned listing of Sterlite Industries was that the copper and aluminium businesses operated as divisions. The separation of the two businesses into two companies will solve this problem because there will be identifiable revenue streams and debt profiles," sources close to the company said.
Sterlite's plans are in contrast to those of its competitor, the Aditya Birla group, which is merging its copper and aluminium businesses into Hindalco.
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