Gujarat NRE Coke Ltd (GNCL) announced on Friday that Bharat NRE Coke Ltd (BNCL), an unlisted group entity, would be merged with itself.
The board of Gujarat NRE decided to amalgamate with BNCL. Bharat NRE owns a met coke producing facility at Dharwad in Karnataka with an installed capacity of 0.32 million tonnes a year.
The current met coke production capacity of GNCL is 0.930 mt a year and would go up by 34.8 per cent subsequent to this merger.
According to the proposed scheme of amalgamation, BNCL shareholders would receive two shares of GNCL for every share held by them in BNCL.
This would result in increase of paid-up capital of GNCL by approximately 8.8 per cent, a company note said.