Mumbai, Aug. 14: Hindalco today announced a price of Rs 96 per share for its rights issue in the ratio of 3:7, which is three shares for every seven held. Earlier, the company had said it would offer shares in a 1:3 ratio.

The equity shares are of a face value of Re 1, meaning the premium is Rs 95.

The AV Birla group company is planning to mobilise up to Rs 5,000 crore to refinance the bridge loan taken to fund the acquisition of Novelis Inc.

The offer price is at a discount of nearly 29 per cent to its current market price. On the BSE, the Hindalco shares today ended at Rs 135.80, a drop of 2.6 per cent over the last close. Shares of the metal leader have been under pressure following concerns over equity dilution.

Sources said the rights issue price should be seen as a move to garner greater investor participation.

Though Hindalco had not disclosed the issue price earlier, it was expected to be about Rs 100 per share.

In a late evening press statement, Hindalco said the company would close its book on September 5. This will, therefore, be the record date for the purpose of entitlement of the rights issue.