Gujarat NRE arm offers rights issue

Source: IRIS (13-MAY-10)

Gujarat NRE Mineral Resources (GNMRL) which enjoys controlling stake of 33% in Gujarat NRE Coke (GNCL) is offering rights issue of 230 million equity shares.

The company is issuing equity shares of Rs 1 for cash at a premium of Rs 4 a equity share aggregating to nearly Rs 1.19 billion to the existing shareholders of the company.

Arun Kumar Jagatramka, chairman and managing director (CMD), GNMRL said, ``This rights offer is being made with a view towards giving an opportunity to the loyal investors of Gujarat NRE group, many of whom have been with us since the inception. The idea is very simple to accord an opportunity to these investors to bless the child in its infancy. Let me reiterate again, long term Investors in our group have benefited the most. We, at Gujarat NRE, believe in creating wealth and sharing it with our stake holders. GNCL has delivered over 100% compounded annual return to an investor in the last decade.``