Kolkata, July 4th, 2007. The Initial Public Offer of India NRE Minerals Limited of 30 million shares at Au$ 0.50 each aggregating to AU$ 15 million has closed on the stipulated date having been over subscribed. The company had received subscription for 43,678,500 shares at 50 cents each. The company has decided to retain the oversubscription and allotted shares to all the applicants in full. The company's request to the Australian Securities Exchange (ASX) for listing of the shares of the company has been accepted and the shares will be listed in the ASX on July 10th, 2007.
The issue is one of its kind in the sense that it was, perhaps the first time, that Indian retail investors took part in an overseas IPO.
India NRE Minerals Limited owns and operates the NRE No 1 colliery with proven resources of more than 300 million tones, in the southern coalfields of New South Wales. This landmark colliery has produced significant amount of high quality Coking coal for more than one hundred years and have catered to both the domestic and export markets.
The majority stake in India NRE Minerals Limited is held by Gujarat NRE Coke Limited which is the largest merchant producer of Low Ash Metallurgical Coke in India. The Indian parent has strategic interests in various resource plays in Australia, was the first company to have acquired a coal mine in the country and today owns the Avondale and set to own the Elouera collieries as well. Gujarat NRE's other major interests in Australia include petroleum prospecting in the Canning basin and prospecting for gold, iron ore, coal, magnetite and other base metals in Tasmania.
India NRE Minerals Limited has negotiated an off-take agreement with the parent company for upto 1 million tones per annum which will give it an unique buffer and put a cap on marketing expenses. The proximity to the un-congested coal export port of Kembla, the tried and tested management expertise of the Indian parent, the historically accepted quality of the coal and the parentage that will offer virtually unhindered access to the to significantly growing Indian steel market will all go to add to the company's free run to prosperity. Add to it the continuous infusion of capital by the Indian parents, who have already invested over $ 90 million in the mine and the prospects seen even better.
The issue was lead managed by BBY Limited, while Ernst and Young Transaction Advisory Services Ltd, Perth acted as Corporate Advisors.
For More Information Contact :
Mr P.R.Kannan
CFO
+91 9879530628