GNMRL issue opens from Jan 14

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Ahmedabad, Jan 13 (UNI) Gujarat NRE Mineral Resources Limited (GNMRL) is offering 10,00,00,000 equity shares to its existing shareholders on a rights basis.

The issue will open on January 14 and will close on January 31.

The issue has been priced at Rs 5 including a premium of Rs 4 per share. Each eligible shareholder is entitled to apply for a minimum of 5,000 equity shares and subsequently in the multiples of 1,000 subject to a maximum of 10 lakh shares.

''The company is making this rights offer to the shareholders, to part finance the prospect of exploration of oil and gas business as also the recently acquired running coke plants in Gujarat'' said Director of GNMRL Arun Jagatramka.'' A new entrant from the house of Gujarat NRE Coke Ltd, India's largest independent producer of metallurgical coke and the only Indian company to own and operate coal mines in Australia, Gujarat NRE Mineral Resources Limited (GNMRL) owns two oil prospecting blocks in the Canning Basis Region of Western Australia. The size of these blocks is 10,640 square kms, making it the largest among the Indian companies prospecting for oil and gas in Australia. The fact that the region is historically known to be rich in resources and that there are oil bearing wells in the immediate vicinity, make the blocks highly prospective. Field and seismic studies, conducted by the company's team of geologists and geophysicists too point towards this conclusion.

Studies conducted so far have now reached a critical stage and the company, having resolved issues relating to native titles, environmental considerations and preliminary investigations both on and off site, are now poised to move into the next stage which will involve further analysis of collected data and 3D mapping of the targeted regions, which lead to the ultimate drilling. According to company estimates, this final process, leading to the actual sinking of wells will involve a further period of 18 to 24 months.

The GNMRL management has consciously decided to keep the scrips in the unlisted domain and envisages a probable listing coinciding with the final stages of the current exploration process keeping in mind the fact that this is a resource play, which typically involves a long gestation period, before fruition with matching returns to those that are willing to wait.

''We are making this rights issue with a view towards giving an opportunity to the loyal investors of Gujarat NRE group, many of whom have been with us since the inception.'' It may be worthwhile to note here, that an investment of Rs 10 lakhs in 1994 in the group's flagship company, Gujarat NRE Coke Limited, is today worth more than Rs 27 crores.

UNI PB DB 1513

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