New Delhi, Aug 7 (UNI) The initial public offering of Austral Coke and Projects Ltd, which opened today for subscription, seems to be in trouble with Gujarat NRE Coke alleging that the company has used half truths and downright lies in its prospectus and other public documents.
Gujarat NRE Coke name appears as a 'peer' in Austral Coke prospectus, thus it alleges that the company is seeking to cash in on their reputation and goodwill in the industry and the investing fraternity.
''Austral has claimed a current production capacity of 3.75 lakh tonnes per annum - this statement is completely baseless considering the fact that the very basis on which the company's projections are made is wrong and misleading, Gujarat NRE Coke said in a statement.
The company has only two chimneys which can give it a produce of 60,000-70,000 tons of coke which cannot justify the claimed figures by any stretch of engineering excellence, it added.
However, speaking to a private news channel, Austral Coke Managing Director Rishi Raj Agarwal said, ''it is a big family dispute which has been going for a long time.'' ''This is a big family dispute. As far as capacities are concerned 40 research analysts have gone from Mumbai. They have visited the site including IL&FS, Anand Rathi and big names, including ICICI Securities. They have given the data to subscribe,'' Mr Agarwal said.
''I donot know why Gujarat NRE Coke is purposely trying to destabilise the issue at this particular time,'' he added.
On replying to a question on whether the capacity is 3.75 lakh tonne or not he said, ''It is a wrong allegation by Gujarat NRE Coke, which we do not agree. The chimney doesn't decide the capacity , it is the ovens and the number of hours discharged decides the finished coke.'' Austral Coke plans to raise Rs 140 crore for its expansion through the IPO of its 72,60,000 equity shares, which opened today.
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