Gujarat NRE's subsidiary to hike production to 2.5 mn tonne

KOLKATA: Gujarat NRE Coke Ltd's Australian subsidiary, Gujarat NRE Coking Coal Ltd will increase production to 2.5 million tonne by March 2012 from the current 1.5 million tonne.

"The production will increase to 2.5 million tonne from 1.55 million tonne now," Gujarat NRE Coke chairman and managing director Arun K Jagatramka said here today.

He said the company had deferred the plan for IPO of Gujarat NRE Mineral Resources Ltd, the parent company of Gujarat NRE Coke, as market valuation was not up to the expectation.

Meanwhile, Gujarat NRE Mineral issued bonus shares to only minority shareholders at a ratio of 1:2 which would decrease the promoter holding from 92 to 88 per cent.

"Promoters have forgone the bonus shares. This is a step toward listing which requires promoters to dilute their holding to 75 per cent," Jagatramka said.