Wednesday May 30, 01:05 PM

Gujarat NRE offers Indian pie from Australian unit IPO

AHMEDABAD, India (Reuters) - Metallurgical coke producer Gujarat NRE Coke Ltd. plans to offer firm allotment to its Indian shareholders in the initial public offer of Australian subsidiary India NRE Minerals.

"Many of our Indian shareholders have shown interest in investing in our Australian IPO, so we are offering them firm allotment," Arun Jagatramka, vice chairman and managing director, said.

India NRE Minerals Ltd., earlier known as Gujarat NRE Australia, said last week it planned to raise A$15 million through an initial public offering.

The money would be utilised for augmenting the production capacity of the company, Jagatramka said.

The Australian unit had earlier planned to raise A$100 million to develop a mine there, but has now scaled down the offer based on near-term fund requirements.

"We have already invested upward of Australian $90 million and after four years, the Australian company has the potential to become an A$2.5 billion company," he said.

India NRE Minerals plans to invest A$150-170 million to more than quadruple capacity to four million tonnes a year, at a mine near Sydney.