Gujarat NRE Coking Coal is seeking to raise $68.8 million from shareholders to finance the continued operation and development of its two Illawarra mines.
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The coalminer will offer more than 1.7 billion shares at 20¢ each to existing shareholders, who can buy one share for every four they hold.
The offer price is well above the 15.55¢ at which Gujarat NRE Coking Coal shares closed yesterday.
Last week Gujarat directors reported a loss of $17.48 million for the 12 months to March 31.
This compares with a profit of $9.77 million for the corresponding period last year.
The figures are calculated in line with the Indian financial year, which runs from April 1 to March 31.
Documents submitted to the Australian Securities Exchange say February was the miner’s most productive month to date at the No 1 Colliery at Russell Vale, with 189,661 tonnes of coal extracted.
Total production for the year at that mine was 782,448 tonnes.
The company’s Indian-based parent company and largest shareholder, Gujarat NRE Coke Ltd, has said it intends to subscribe to the new share offer, which would inject tens of millions into the Australian operations.
The miner evaded a takeover bid by Jindal Steel & Power earlier this year, after Jindal stepped in to invest $32.5 million in Gujarat and become a major shareholder.
Jindal also agreed to buy 700,000 tonnes of coal each year for a decade.
During the takeover bid Jindal increased its shareholding to 31.49 per cent.