Gujarat raises more funds

AS PLANNED, Gujarat NRE Coking Coal has raised $A26.43 million from the institutional component of its entitlement offer.

Blair Price

The deal, with two new shares issued at 8c each for every 11 shares held, created the issue of 330.4 million more Gujarat shares.

The Illawarra coal miner has not yet revealed who participated.

However, its key shareholder Jindal Steel, which saved Gujarat from a cash crisis by buying 328.5 million ordinary shares in November, is likely to have subscribed to the full amount to maintain its majority stake.

Gujarat is seeking $13.84 million of proceeds from the retail component of the offer, which was previously expected to run from February 6-22.

All funds raised will assist working capital and funding needs, plus help pay interest on bank loans.

The company is expected to emerge from its annual general meeting on February 25 under the new name of Wollongong Coal.

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