Gujarat NRE Mineral to file draft IPO prospectus this month

Gujarat NRE Mineral Resources Ltd (GNMRL), the holding company of Gujarat NRE Coke, today said it will file a draft prospectus for a Rs 1,000 crore initial share sale offer later this month.

"We will be filing the draft red herring prospectus with the Sebi within this month, that is October," Gujarat NRE Coke CMD Arun Kumar Jagatramka told PTI.

Gujarat NRE Coke Ltd (GNCL) is the flagship entity of the Gujarat NRE group and is a leading producer of met coke in the country. GNMRL holds a controlling stake in GNCL.

The company has roped in merchant banker Anand Rathi to manage the public issue, he said.

While Jagatramka refused to comment on the amount his company aims to raise through the public float, market sources said that the company aims to garner up to Rs 1,000 crore from the initial public offering.

According to Jagatramka, the IPO proceedings would be used to hike the promoters' stake in Gujarat NRE Coke Ltd.

"The money raised by the firm will be pooled in Gujarat NRE Coke," he said.

The issue would see a dilution of 25 per cent stake by the promoters in GNMRL. The promoters hold a 90 per cent in GNMRL and post-IPO, it will come down to 65 per cent.

Gujarat NRE Coke is listed on the Indian bourses. Shares of GNCL were being quoted nearly 1 per cent higher at Rs 62.30 in afternoon trade on the National Stock Exchange.