Gujarat NRE Coke approves issuance of 5 crore warrants

Kolkata, May 14 (IANS) Gujarat NRE Coke ltd, the largest independent coke producer in India, Monday said its board has approved the plan to issue five crore warrants to promoters on preferential basis and raising capital of up to $150 million by issuing securities.

"The board of directors of the company at its meeting held on May 13, 2012, inter alia, decided to issue securities (including Foreign Currency Convertible Bonds) in one or more tranches, for an amount not exceeding $150 million or Rs.750 crore, whichever is higher subject to the approval of shareholders," the company said in a regulatory filing.

The board of the company has also approved providing a guarantee of upto Australian $100 million (about Rs.5 billion) to its Australian subsidiary, Gujarat NRE Coking Coal.

The guarantee is proposed to be provided to the Australian subsidiary for borrowings to help it avail working capital facilities.

The company would conduct a postal ballot exercise to secure shareholders approval for all the announcements.