The Hindu Business Line : Gujarat NRE places 2.3 pc equity with FII

GMO Emerging Market Fund, a leading FII, has picked up 11 lakh equity shares in Gujarat NRE Coke Ltd, amounting to 2.3 per cent of the company's equity of 4.7 crore shares.

The deal was completed on Tuesday at Rs 121.18 per share, following which the scrip had hit a 52-week high intra-day of Rs 128.90.

According to sources close to the company, this deal worth Rs 13.39 crore, marks the beginning of more such private placements in the coming days. It has already intimated BSE about a meeting of its board of directors that has been convened on December 6.

The listed transactions for the board meeting include the issue of securities of the company, including on private placement basis to FIIs and high networth individuals as also for considering the issue of employees stock option scheme (ESOPS).

"The need for the company to raise funds by going in for a private placement has arisen on account of its recent acquisition of a mine in Australia for around $ 18 million. The capex that will have to be made in this project would be around $ 40 million, if not more. Therefore, details such as the final rate and quantum of shares to be issued are yet to be decided," the sources said.

GNCL had closed the last fiscal (ended September 2004) with a turnover of Rs 285 crore and a net profit of Rs 90.7 crore.

The stock closed on Wednesday at Rs 124.50 on the BSE with 5.53 lakh shares being traded. On the NSE, it ended the day at Rs 124.80, down 1.77 per cent over the previous day's close. Of the 14.80 lakh shares traded on the NSE, 33 per cent were accounted for delivery.

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