This article is 18 years old. Images might not display.
The stock opened its first day on the Australian bourse at 55c, a 10% premium to its 50c issue price, after raising $15 million in its initial public offering.
India NRE Minerals and its parent company, Gujarat NRE Coke, claim Bounty Industries, renamed Coal Contractors Australia (CCA), Malcolm Carson, former directors Mark Gray and Gary Williams, and others, made false representations about the production capacity of the Bellpac No. 1 Colliery when it was sold to India NRE Minerals.
The company also alleges the defendants made false representations regarding the complexities of recommencing operations at the mine and the risk involved in carrying on mining activities.
Gujarat is seeking $A100 million in damages for loss of profits and compensation for the cost of maintenance and repairs, but does not expect to be able to recover the full amount. CCA is now in liquidation.
Shares in India NRE Minerals have since slipped back to 53c in afternoon trade.
