Gujarat NRE Coke allots shares on FCCB conversion

Our Bureau Ahmedabad | Updated on April 07, 2011

Gujarat NRE Coke Ltd (GNCL), the flagship company of Gujarat NRE Group, on Thursday said it has received conversion notices for the balance outstanding 174 zero coupon unsecured Foreign Currency Convertible Bonds (FCCB) of $100,000 each out of its total issue of 600 FCCBs aggregating $60 million issued in 2006.

Consequently, this FCCB issue has been fully converted by the bondholders.

The previous issue of unsecured FCCBs of $25,000 each, aggregating $55 million, issued in 2005, was also fully converted by its bondholders, Mr Arun Kumar Jagatramka, Chairman and Managing Director, said in a statement here.

Rise in prices

High demand and short supply of coking coal and metallurgical coke globally has led to a steep rise in prices.

The price of coking coal has risen to record levels with the contracted price of coking coal for the current quarter settling at the peak rate of $330/tonne while the price of met coke is now hovering around $540.

To meet this demand, Gujarat NRE Coke is increasing met coke production capacity from the current 1.38 MTPA to around 4 MTPA by 2014-15.

In Australia also, the Group has undertaken a mine development plan to increase production of coking coal from the existing 1.5 MTPA to 6 MTPA by 2014-15 making it one of the top 10 hard coking coal producers in the world, he said.

GNCL is the only Indian company to own and operate coking coal mines in Australia.

Published on April 07, 2011

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