Guj NRE lines up Rs 500-cr issue
(The Telegraph, Kolkata, December 30, 2005)

Gujarat NRE Coke Ltd, the largest non-captive metallurgical coke manufacturer in the country, will raise Rs 500 crore from the international market by issuing ADRs, GDRs or FCCBs.

The company board, which met today, also approved a swap ratio of 1:1 for the merger of FCGL Industries with itself.

The merger process will be completed in three months, company president Sumit Khetan said.

The board has also approved a change in the main object of the memorandum of association to expand the scope of business.

FCGL Industries has also informed the stock exchange that the board of directors has approved its merger with Gujarat NRE Coke.

The fund would be deployed to develop a coal mine acquired during the year in Australia. Moreover, it will use the kitty to fund further acquisitions.

The mine has reserves of 96 million tonnes. The company is expected to pump in $65 million to develop the mine, which is expected to start production in 2007.

FCGL owns a coal mine in Australia too. The merger will give complete ownership of that mine to GNCL.

The change in the MoA is being affected to expand the company’s business.

The coal mines are also expected to produce significant volumes of thermal coal (high in ash content), which can be used for power generation.

Gujarat NRE is now setting up a power plant using the waste heat recovery system.