Kolkata: Metallurgical coke producer Gujarat NRE said on 1 June 2007, its Australian subsidiary India NRE Minerals Ltd (INREML) is seeking to raise up to A$25 million (Rs83 crore) through an initial public offering in that country.
“We have filed an IPO prospectus to raise A$15 million — with a right to accept oversubscriptions of A$10 million — and seek listing on the Australian Securities Exchange,” INREML chairman A Jagatramka said.
It is for the first time that Indian citizens will be able to buy shares of a local company getting listed on an Australian bourse. The company hopes to allot 50% of the shares in India as the Australian regulator empowers discretionary allotment.
INREML, which owns one of the oldest operating coal mines in Australia with deposits of 300 million tonnes prime hard coking coal, is offering shares at 50 cents each.
Assuming full subscription along with the over-allotment option, the issue will raise A$25 million, after which Gujarat NRE Coke would hold more than 90% in INREML.
The company plans to increase production to 4 million tonnes a year from the current 1 million tonnes in about four years’ time.
The company bought the Australian mine for A$10 million in 2004 and invested another A$90 million to develop it. Its pre-IPO valuation stood at A$225 million.
Gujarat NRE has three mines in Australia after it bought over a mine from global mining major BHP Billiton recently.