The Hindu Business Line : Gujarat NRE Coke's Australian unit files for IPO

Kolkata June 1 Shareholders of Gujarat NRE Coke Ltd will now be able to own shares of the company's Australian flagship, India NRE Minerals Ltd, which is slated to be listed on the Australian Securities Exchange (ASX) shortly.

India NRE Minerals Ltd (INML) has sought to raise A$ 15 million in an initial public offering (IPO) with a right to retain over subscription to the tune of A$ 10 million. Proceeds from the issue will go towards augmenting the production capacity of the INML-owned NRE No 1 Colliery located in the Southern Coalfields of New South Wales, Australia.

According to Mr Arun Kumar Jagatramka, Vice-Chairman & Managing Director of Gujarat NRE Coke, the company has arranged for firm allotment for its Indian shareholders in the INML issue. The placement price has been pegged at A$ 0.50 per share. It is hoped that 50 per cent of the subscription to the total securities on offer would be from existing Indian shareholders of Gujarat NRE Coke.

Reserve Bank of India guidelines permit Indians to invest up to $1,00,000 per annum in listed companies overseas.

Mr Jagatramka said that, while an Aditya Birla Group company has been the first Indian company to be listed in Australia, INML would be the first company where minority shareholders of the Indian parent would hold securities.

INML, which owns and operates the NRE No 1 Colliery in Southern Coalfields of New South Wales, Australia, was acquired by GNCL in December 2004 for A$ 10 million. Post-acquisition, an additional amount of A$ 90 million has been pumped into the company.

The idea now - subject to bankable feasibility study into commencement of long wall mining - was to ramp up production from the current level of one million tonnes per annum to four million tonnes per annum. The mine has proven hard coking coal reserves in excess of 300 million tonnes.

According to the INML offer document, the company's pre-IPO valuation has been pegged at A$ 225 million. The post-IPO market cap would be A$ 240 million, at the least.

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Gujarat NRE Coke's Australian unit files for IPO