Gujarat NRE Minerals to file draft papers for IPO

September 10th, 2010 - 7:48 pm ICT by IANS  

Kolkata, Sep 10 (IANS) Gujarat NRE Mineral Resources Limited (GNMRL) will file the draft red herring prospectus (DRHP) within a month for its initial public offering, diluting 25 percent stake, a top company official said here Friday.
“Twenty five percent stake will be diluted. We should be filing DRHP in a month’s time,” Arun Kumar Jagatramka, chairman and managing director of Gujarat NRE Coke, told reporters on the sidelines of the annual general meeting of the company.

GNMRL holds 36 percent stake in India’s largest independent producer of metallurgy coke, Gujarat NRE Coke Ltd (GNCL).

Jagatramka, however, said valuation of the size is yet to be made.

At present, the promoters hold 90 percent stake in GNMRL and after listing it would come down to 65 percent.

Jagatramka said Gujarat NRE Coking Coal Ltd (GNCCL), the Australian subsidiary of GNCL, which owns and operates two coal mines in Australia, is expected to touch a production level of six million tonne per annum of coking coal by 2014-15.

About investment plans, Jagatramka said: “In Australia about A$120 million would be invested in this fiscal.”

He said investment in Australian unit is A$120 million every year for the last two years and it would remain so for the coming two years. “Till date investment in Australia is A$400-450 million. Next four years our investment will be similar.”

Investment in Australian operation goes into development of mines, including mining equipment, he said.

Back in the country, Jagatramka said investment would be made for completion of power plants and for the Andhra Pradesh project.

“In India Rs.200 crore investment will be done for the next one year for the completion of the power plants. After one year, construction work of Andhra project should begin. Andhra project will entail investment of around Rs.700-800 crore,” he said.

In Andhra Pradesh, it is building a plant with one million tonne coke and 60 MW of power capacities.

“We have just initiated the environment clearance process for the project,” he said.

Regarding prices, Jagatramka expects coking coal prices to hover around $200 per tonne in the coming six months and coke price to be around $500 a tonne in the long term.

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