Gujarat NRE Coke extends Tuesday's rally

Gujarat NRE Coke rose 1.97% to Rs 8.79 at 9:20 IST on BSE, with the stock extending Tuesday's 10.79% rally triggered by the company receiving the formal approval for the restructuring of the debts, from the Empowered Group of CDR Cell.

Meanwhile, the S&P BSE Sensex was up 114.55 points or 0.52% at 22,169.76.

On BSE, so far 78,000 shares were traded in the counter as against average daily volume of 2.51 lakh shares in the past two weeks.

The stock hit a high of Rs 9 and a low of Rs 8.79 so far during the day.

Shares of Gujarat NRE Coke have rallied 12.98% in two trading sessions from Rs 7.78 on 24 March 2014, after the company during trading hours on Tuesday, 25 March 2014 said it has received the formal approval for the restructuring of the debts, from the Empowered Group of Corporate Debt Restructuring (CDR) Cell. The stock had rallied 10.79% to settle at Rs 8.62 on Tuesday, 25 March 2014.

As per CDR package, the debt would be restructured for 10 year door-to-door, with two year moratorium and ballooning repayment. The package involves funding of interest for two years. It includes an additional need based working capital aggregating Rs 370 crore. The CDR package also envisages a fresh term loan of Rs 50 crore for completing the waste heat recovery based (WHRB) power plants at Dharwad, Karnataka.

Gujarat NRE Coke reported a net loss of Rs 277.48 crore in Q3 December 2013 as against net profit of Rs 20.12 crore in Q3 December 2012. Net sales declined 63.2% to Rs 193.86 crore in Q3 December 2013 over Q3 December 2012.

Gujarat NRE Coke, the flagship company of Gujarat NRE group, is one of the largest independent producers of met coke in India with an installed capacity of 1.5 million tonnes per annum (MTPA). The company has its met coke plants at Khambhalia and Bhachau in Gujarat and Dharwad in Karnataka. The company has 87.5 MW wind power energy production capacity and also has a mini steel mill at Gujarat to recycle steel scraps using green wind energy to manufacture TMT Bars. The company is currently setting up 30 MW power plants out of the waste heat emanating from the coke making process at Dharwad, Karnataka

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