LETTER OF OFFER November 25, 2005 For Equity Shareholders of the Company Only HINDALCO INDUSTRIES LIMITED Registered Office: Century Bhavan, 3rd Floor, Dr. Annie Besant Road, Worli, Mumbai 400 025, India. We were incorporated on December 15, 1958 as Hindustan Aluminium Corporation Limited under the provisions of the Companies Act, 1956. We changed our name from Hindustan Aluminium Corporation Limited to Hindalco Industries Limited on October 9, 1989. The Registered Office of the Company was shifted from Industry House, 159 Churchgate Reclamation, Mumbai 400 020, India effective September 1, 1970. (For further details see “History of the Company and Other Corporate Matters” on page 80 of this Letter of Offer.) Tel: +91-22-56626666; Fax: +91-22-24227586/24362516 Contact Person: Mr. Anil Malik, Company Secretary and Compliance Officer E-mail:
[email protected], Website: www.hindalco.com For private circulation to the Equity Shareholders of the Company only LETTER OF OFFER FOR PRIVATE CIRCULATION TO THE ORDINARY SHAREHOLDERS OF THE COMPANY ONLY ISSUE, ON A RIGHTS BASIS OF 231,936,993 EQUITY SHARES WITH A FACE VALUE OF Re. 1 EACH AT A PREMIUM OF Rs. 95 PER EQUITY SHARE FOR AN AMOUNT AGGREGATING Rs. 22,266 MILLION TO THE EXISTING EQUITY SHAREHOLDERS IN THE RATIO OF ONE EQUITY SHARE FOR EVERY FOUR EXISTING EQUITY SHARES HELD BY THE EXISTING SHAREHOLDERS ON THE RECORD DATE, i.e., NOVEMBER 28, 2005 ON A PARTLY PAID BASIS IN TERMS OF THIS LETTER OF OFFER (“ISSUE”). THE ISSUE PRICE FOR THE EQUITY SHARES WILL BE PAID IN THREE INSTALLMENTS: 25% OF THE ISSUE PRICE WILL BE PAYABLE ON APPLICATION; 25% OF THE ISSUE PRICE WILL BECOME PAYABLE, AT THE OPTION OF THE COMPANY, BETWEEN 9 AND 12 MONTHS AFTER THE ALLOTMENT DATE; AND 50% OF THE ISSUE PRICE WILL BECOME PAYABLE, AT THE OPTION OF THE COMPANY, BETWEEN 18 AND 24 MONTHS AFTER THE ALLOTMENT DATE.