Coking coal producer Gujarat NRE Coke on Saturday said it would launch an overseas bond offering on Tuesday to raise up to $ 20 million (about Rs 107 crore).
In a filing to the BSE, the company said that it would launch, on October 23, an issue of $ 15 million direct, unsubordinated, unconditional (subject to the conditions of the negative pledge) and unsecured convertible bonds subject to an over allocation of $ 5 million.
The issue is convertible into ordinary equity shares of the company quoted in rupees, it added.
According to the filing, Gujarat NRE’s Board of Directors and shareholders have already approved the proposed fund raising in May and June respectively.
“Further, the opening of the issue has been authorised by a resolution of the management committee of the Board of Directors of the company passed at its meeting held on October 19, 2012,” the filing said.
First International Group Plc has been appointed by the company as the lead manager and book runner for the issue.
The filing further said that the floor prices for conversion of the bonds, will be determined as per the pricing formula prescribed by Finance Ministry and the relevant date for this purpose has been fixed as October 19, 2012.
It added that other details of bonds issue will be announced after its closure.
For the quarter ended September 30, 2012, company’s standalone net profit more than doubled to Rs 16.72 crore, while its net sales was up nearly 23 per cent to Rs 331.83 crore.