Resurgere Mines & Minerals has fixed the price band at Rs 263-272 for its public issue of 44,50,000 equity shares of Rs 10 each through 100 per cent book-building process.
The issue opens on August 11 and closes on August 13, 2008.
Resurgere Mines is engaged in the business of extraction, processing and sale of mineral products and exploration and development of mining assets.
The company proposes to utilise the net proceeds of the issue to part-finance its plan for purchase of plant and machinery valued at Rs 128.56 crore for setting up of its own extraction and crushing facilities at the mines.
"We intend to become amongst the leading players in the mining industry with a vast product portfolio. We are venturing into mining of other minerals and resources which may include copper, manganese, zinc and others," Resurgere Mines' Chairman and Managing Director, Subhash Sharma, said.
With a view to set up its own logistics infrastructure facilities, the company is also purchasing six railway rakes worth Rs 116.36-crore.
"Under the Wagon Investment Scheme, on handing over the six purchased rakes to the railways, the company would be provided with an assured supply of 4 rakes per month against each rake," Sharma said.
"Additionally, the company will be entitled to a fright rebate of 10 per cent and also eligible to get an additional 2 rakes per month against each rake given by it without freight rebate," Sharma said, adding that each rake would have a carrying capacity of 3,900-tonnes.