Hindustan Copper’s Ahmed Says Indian Companies May Borrow Abroad

Shakeel Ahmed, chairman of Hindustan Copper Ltd. (HCP), India’s monopoly miner of the ore used to extract the metal, comments after the Reserve Bank of India today raised interest rates for the fourth time this year.

“The rate hike may hurt sales and profitability of Indian companies, and may also delay investment decisions. The impact will be felt across the board, but mostly in sectors like real estate, automobile and infrastructure.

“Companies will now expect to raise money overseas, because the cost of raising funds is lower.

“Hindustan Copper will need about 2.07 billion rupees ($46 million) in the 12 months ending March 2014 and I will prefer to raise it from overseas markets. The board will have to take the final decision.”

To contact the reporter on this story: Pradipta Mukherjee in Mumbai at pmukherjee7@bloomberg.net

To contact the editor responsible for this story: Arijit Ghosh at aghosh@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.