The Gujarat NRE Coke group will be investing Rs 4,000 crore over the next five years in its Indian and Australian operations.
Arun Kumar Jagatramka, chairman and managing director said, the investment in India would be Rs 2,000 crore in coke and power businesses. Investment in Australia would be another Rs 2,000 crore.
Gujarat NRE Coke plans to invest in two one million coke facilities in Andhra Pradesh and Gujarat. The location for another one million tonne plant was yet to be finalized, said Jagatramka. The coke facilities would have captive power plants. At present, the company’s coke capacity in India is 1.25 million tonnes.
The move would be supplemented by increased production of coking coal in the Australian mines, which would be stand at seven million tonnes by 2014-15 from the current level of 1.8 million tonnes. Jagatramka said, the investment would be funded through a mix of debt and equity. The board of directors recommended a bonus issue of “B” equity shares carrying lower voting rights in the ratio of one differential voting right (DVR) bonus share for every 10 equity shares held.
Earlier in November 2008, the company gave two bonus equity shares for every five equity shares held. Jagatramka said, DVRs were introduced in 2000, but very few companies opted for the instrument. “It could generate much higher returns to investors in future as compared to the regular equity shares,” he said. On the bid for Rey Resources, an ASX listed company, Jagatramka said, the company would not raise the bid.