Sterlite Corporate Action

The Corporate Action

On June 11, 2010, Sterlite Industries (India) Limited (the “Company”) announced that its 35^th Annual General Meeting of shareholders (“AGM”) was held earlier that day. At the AGM, the shareholders of the Company approved and adopted each of the previously announced resolutions contained in the Company’s Notice of the 35^th Annual General Meeting, including, but not limited to, the following:

• A cash dividend of Rs. 3.75 per equity share of par value Rs. 2 each (the “Rs. 2 Shares”) payable on June 16, 2010 to shareholders of record as of May 20, 2010;
• A split of each of the Rs. 2 Shares into two equity shares of par value Re. 1 each (the “Re. 1 Shares”); and
• A bonus issue of Re. 1 Shares in the ratio of 1:1 on the Re. 1 Shares.

The register of members and share transfer books of the Company was closed on May 21, 2010 for the purpose of determining the shareholders of the Company entitled for payment of the Company’s dividend.

The record date (the “Record Date”) and effective date were set at June 22, 2010 and June 25, 2010, respectively, for both the stock split and bonus issue. As a result of the combined effect of the stock split and bonus issue, on June 25, 2010, each Rs. 2 Share held by a shareholder on the Record Date will automatically convert into four Re. 1 Shares.

The Company’s American Depositary Shares (“ADSs”), each representing one Rs. 2 Share, are listed and trade on the New York Stock Exchange (“NYSE”) under the symbol “SLT.” In order to give effect to the stock split and bonus issue, the Company expects to change the ADS-to-equity share ratio from one ADS representing one Rs. 2 Share to one ADS representing four Re. 1 Shares effective as of June 25, 2010.

Effect on Stock Price.

• On Friday the Stock Closed at Rs 678.35 in NSE and it opened at Rs.180 now the stock is trading at Rs.186.55 in NSE.

• After the declaration of Bonus in ratio 1:1 the Stock price should have been reduced to 50% at Rs 339 and due to Stock Split from face value of Rs2 to Re.1 the again the stock price should have been reduced to 50% at Rs.169.5

• But the stock is trading at Rs.186.55 CMP. Thus it is 10.05% up than the expected price which shows positive signals of buying in the stock.