Gujarat NRE Coke Board to consider rights issue

September 11th, 2008 - 1:55 am ICT by IANS  

Ahmedabad, Sep 11 (IANS) Gujarat NRE Coke, the country’s largest independent coke producer that is currently riding the crest of a global price upsurge, is planning a rights issue to augment its capital for setting up a greenfield coke oven plant.Its board of directors would meet Sep 17 to consider among other items an issue of equity shares with differential voting rights (DVR shares) to the existing shareholders on a rights basis in the ratio of 1 DVR share per 300 existing equity shares. The right shares would be priced at at Rs.1,000 per share (face value of Rs.10 and a premium of Rs.990) carrying higher voting rights while maintaining parity in all other respects to the existing equity capital of the company, said vice-chairman and managing director Arun Kumar Jagatramka.

The company has already mooted a bonus issue in ratio of 2:5 which is expected to be passed at the AGM next week and may be issued by end of October. The AGM is also expected to declare an enhanced dividend of 25 percent.

The 1 million tonnes per annum coke oven plant will come up at Nellore district in Andhra Pradesh.

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