Resurgere Mines

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Mumbai, Aug 6 (UNI) Resurgere Mines&Minerals India Ltd will raise Rs 121 crore through its initial public offering (IPO), opening on August 11 in the price band of Rs 263 to Rs 272 and per equity share of Rs 10 each.

The company, through this public issue of 44.5 lakh share, closing on August 13, will dilute its 15 per cent stake and post issue promoters' holding will come down to 56 per cent, Resurgere Chairman and Managing Director Subhash Sharma said here today.

The proceeds of the issue are proposed to part finance company's plan for purchase of Plant and Machinery, valued at Rs 128.5 crore, and for purchasing six railway rakes worth Rs 116 crore in order to set up its own logistics infrastucture facilities, besides meeting margin money requirement for working capital, the company stated.

The company also proposes to part finance the cost through term loans of Rs 86 crore from banks, Rs 43 crore through private equity funding from Merrill Lynch International and Rs 13.73 crore through pre-IPO allotment, the company added.

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