Gujarat NRE subsidiary to list on Australian Exchange

Gujarat NRE subsidiary to list on Australian Exchange
PTI
Comment E-mail Print Share
First Published: Thu, Jul 05 2007. 12 47 PM IST
Updated: Thu, Jul 05 2007. 12 47 PM IST
Mumbai: Gujarat NRE Coke today said its Australian subsidiary India NRE Minerals will list on the Australian Securities Exchange (ASX) on 10 July, following a 15 million Australian dollar initial public offer.
The low-ash metallurgical coke maker had received subscription for 43.68 million shares, against 30 million shares offered, at 50 cents each. The shares would be listed on the ASX on 10 July, Gujarat NRE Coke said in a filing to the Bombay Stock Exchange (BSE).
“The issue marks the entry of Indian retail investors, who have overwhelmingly responded to our call to come on board the flagship of the NRE group in Australia,” Gujarat NRE Coke Vice Chairman and Managing Director Arun Kumar Jagatramka said.
The Reserve Bank recently allowed individual Indians to invest up to 1,00,000 dollar in overseas listed equity every year.
The current issue is being floated to raise funds to ramp up production capacity to over four million tonnes per annum from one MTPA at present.
Gujarat NRE Coke would continue to hold more than 90% stake in India NRE Minerals Ltd even after the public offer.
India NRE Minerals owns and operates colliery in the southern coalfields of New South Wales, which caters to both domestic and export markets.
The Australian subsidiary has negotiated an off-take agreement with its parent for up to one million tons per annum that would give it a buffer and put cap on marketing expenses.
The issue was lead managed by BBY Ltd, while Ernst and Young Transaction Advisory Services Ltd, Perth acted as Corporate Advisors.
Comment E-mail Print Share
First Published: Thu, Jul 05 2007. 12 47 PM IST