Coking coal major, Gujarat NRE Coke Ltd will raise up to US $ 20 million (approx. Rs 1060 crore) through foreign currency convertible bonds (FCCBs).
The company will launch the issue on October 23.
In a filing with the stock exchanges, the company informed that it would launch on October 23, an issue of US $ 15 million direct, unsubordinated, unconditional (subject to the conditions of the negative pledge) and unsecured convertible bonds subject to an over allocation of US $ 5 million, convertible into ordinary equity shares of the company quoted in Indian rupees.
It may be noted that the board of directors of the company had approved the said issue of bonds and issuance of the equity shares of the company upon conversion of the bonds at their meeting held on May 13, 2012 and later by a special resolution of the shareholders passed by postal ballot the result of which was declared on June 21, 2012, the company informed in a statement filed on Saturday.
"Further, the opening of the issue has been augthorised by a resolution of the management committee of the board of directors of the company passed at its meeting held on October 19, 2012," the statement said.
The company has appointed First International Group Plc as the lead manager and book runner for the issue.
The floor price for the conversion of the bonds, will be determined in accordance with the pricing formula as prescribed by the ministry of finance, government of India and the relevant date for this purpose is October 19, 2012.
Gujarat NRE Coke's net profit increased by 100 per cent during the second quarter ended September 30, 2012 against same period last year.
The company registered profit after tax at Rs 16.72 crore for the quarter, while its income increased by 23 per cent at Rs 331.83 crore during the period.
