The transaction, confirmed by an Appendix 3B announcement by Gujarat yesterday, acquired the shares at 20c each. This was 208% higher, or more than three times more than the Gujarat share price of 6.5c, at the time this news was announced.

But the deal also provided Jindal with 328.5 million of nil-priced Gujarat options, which have an expiry date of November 11, 2018.

The completion of this deal will provide more assurance to Gujarat’s workforce. Many still have weeks of outstanding wages with Gujarat making a payment a week ago that amounted to a fortnight of wages.

Before this time, Gujarat had stopped making regular wage payments in September and it still has unpaid workforce superannuation commitments going back to March.

In its recent quarterly report, Gujarat said Jindal agreed to provide a $50 million short-term debt facility.

There is a separate plan to launch a $300 million non-renounceable rights issue while in its recent quarterly Gujarat said it was in other talks to gain up to $100 million of additional financing from its existing bank lenders.

There is also the prospect of further coal sales due to the workers who continued longwall operations on an unpaid basis throughout the company’s recently-overcome cash crisis.

By completing the share offer Jindal will increase its stake of Gujarat to 53.65%.