Shares in Sterlite Industries India Ltd, part of miner Vedanta Resources Plc, jumped to two-week highs on Wednesday after the business group said it was shelving a plan to restructure its business.
India-focused Vedanta had announced on Sept. 9 a restructuring plan to form three commodity-focused groups: copper, zinc and lead; aluminium and energy; and iron ore.
On Wednesday, Vedanta said it was dropping its restructuring plan on account of the global financial markets, and Sterlite issued a similar statement.
"In view of the recent changes in the global financial markets, and investor feedback ... the board has decided not to pursue the proposed restructuring scheme," Sterlite said in its statement to the stock exchange in Mumbai.
"The company is committed to simplifying and streamlining the group corporate structure in the interest of all shareholders."
Anil Agarwal, chairman of both Vedanta and Sterlite, said restructuring plan was dropped because the investor mood had soured, but it would not impact any projects or spending plans.
"No one was in a mood ... there was no point in going ahead with this," Agarwal said in a television interview.
"We are having $6.5 billion of cash sitting with us and also the company is generating enough profit. At this time we are comfortable to pursue our projects. No capex plan will be postponed," he said.
"We should be in a position to complete our projects on time. We are not curtailing any projects."
Shares in Sterlite rose as much as 15.1 percent to 517.70 rupee, their highest since Sept 11.
In other group companies, shares in iron-ore exporter Sesa Goa trimmed morning losses and were down 1 percent at 126 rupees, and Madras Aluminium extended gains to 5 percent, their maximum daily limit, at 128.55 rupees.
Sterlite had risen 6.3 percent in morning trade after a U.S. judge cleared the way for creditors of bankrupt copper miner Asarco LLC to vote on two competing plans, including Sterlite's $2.6 billion bid.
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