Board of Gujarat NRE Coke approves Rs 550-crore fund raising

NEW DELHI: Gujarat NRE Coke today said its Board has approved raising up to $ 100 million (Rs 550 crore) by issuing convertible securities overseas.

The company said in an exchange filing that its Board has approved "issue of Securities (including Foreign Currency Convertible Bonds) for an amount not exceeding $ 100 million or Rs 550 crore, whichever is higher".

The Board has also cleared, subject to the approval of shareholders, investment or loans not exceeding Rs 2,050 crore, the filing said.

The Gujarat NRE Board had in February authorised the company management for issue of FCCBs, not exceeding $ 60 million.

FCCBs are quasi-debt instruments and companies issue these bonds to raise capital.

Gujarat NRE has coking coal mines in Australia with over 650 million tonnes of resource. It owns these firms through its subsidiary -- Gujarat NRE Coking Coal, listed on the Australian Stock Exchange.

Shares of the company today settled at Rs 17.40 apiece, up 1.16 per cent over the previous closing in the BSE.