Gujarat NRE shareholders to get firm allotment

Gujarat NRE Coke Ltd (GNCL) has arranged for its shareholders firm allotment in the India NRE Minerals Limited, its issue from the Chairman's list.

Gujarat NRE Coke Ltd (GNCL) is in the process of having its Australian Flagship, India NRE Minerals Limited listed in the Australian Securities Exchange (ASX).

To facilitate this listing, the company has come out with an IPO seeking to raise Au$ 15 million with a right to retain over subscription of a further Au$ 10 million.

Arun Kumar Jagatramka, Vice Chairman & Managing Director said that the industry is enjoying boom time as the Chinese have tripled the export duty on Met Coke leading to a global hardening of coke prices which in turn has directly benefitted the company's bottom-line.

Add to this the fact that most Australian ports, except port Kembla are jammed with vessels from around the world, the company's proximity to Port Kembla, which is not only zero congested but is also extremely user friendly will further ease logistical costs apart from according the usual benefit of a steady, in-house supply of a commodity that is scarce.

Proceeds of the issue will be utilized for augmenting the production capacity of the company owned NRE No 1 colliery in NSW, Australia.

Subject to BFS & Longwall implementation, production from the colliery will be stepped up to 4 million tonnes per annum from the current level of one million tonnes annually and will help the company playing a significant role in steel industry in India, where hunger for good quality coking coal is shooting every day.

Jagatramka said this colliery with resources of 300 million tonnes of excellent grade hard coking coal is expected to feed the additional 50 million tonnes per annum demand for Australian coking coal in five years time.

India imports 90 percent of her coking coal from Australia and the fact that Gujarat NRE Coke is the first and only Indian company to have acquired and operate mines in Australia strengthens the leadership status.