Gujarat NRE Power to Merge with Gujarat NRE Coke, Merged entity promises exciting times ahead to shareholders
(Press Release, July 2003)

Kolkata, July 1st 2003: Kolkata based manufacturer of low ash metallurgical coke, Gujarat NRE Coke Limited (GNCL) is on the roll. Buoyed by a demand supply gap in the world market and consequent firming up of prices, the company which heated up its 10th Chimney in the previous month, is today the largest manufacturer of LAMC in the country in the private sector. GNCL, which offered a bonus to its shareholders in the ratio of 2:1 in the previous year is doing exceptionally well in the current year as well and is poised to come out with very encouraging half yearly results in the current year according to the trends already visible. Its commitment to quality and eco friendliness has also been acknowledged by the receipt of the Greentech Award for the current year which was conferred in a glittering ceremony in Goa in June this year.

Close on the heels of such a slew of good news, GNCL is getting bigger and fatter by merger of Gujarat NRE Power Ltd. with itself. The Hon'ble Kolkata High Court has convened the EGM of shareholders of both companies on 15th July to finalise the same. As per the draft scheme of merger, the shareholders of GNPL will get 3 Shares of GNCL for every 10 shares held in Gujarat NRE Power Ltd.

The merger offers a win win situation for both the companies and their shareholders. While the shareholders of Gujarat NRE Power will get instant liquidity, the company Gujarat NRE Power Ltd. which faced a resource crunch for further development and depended on a very great extent on GNCL for financial and logistical support, will have freer access to the financial strength of GNCL, Gujarat NRE Coke will enjoy the benefits of rationalisation and synergies. It will be pertinent to mention here that Gujarat NRE Coke is doing extremely well in the current year and post merger, it is expected to do even better when revenues from the generation of power from waste heat is taken into account. Besides, with the very positive environment prevailing in the international steel and coke markets, the company is slated to reap a dream harvest. Thus the company which has given out a bonus issue to its shareholders in the previous year is confident to maintaining its EPS at current levels (Rs 6+) in the current year on the enhanced capital base.

�Stay tuned� says a beaming Arun Kumar Jagatramka, Managing Director, "we had created corporate history of sorts by declaring a bonus in the very first year of our commercial operations. Since then, we have faced the wrath of God and Man but have not been cowed down, as we have proved with the bonus in the last year. With times turning to good, we look forward to making our shareholders smile this year round too. We hope to give them what excites them the most : an enhanced association with the company."