Gujarat NRE Coke’s Australian subsidiary raises over Rs. 320 crores
02/17/2011

Gujarat NRE Coke Limited has announced that its Australian subsidiary Gujarat NRE Coking Coal
Limited (ASX Code: GNM) has raised over Rs.. 320 crores through an
institutional placement done through book building mechanism.

The placement which opened on 16th February 2011 closed on the same day.

Online PR News – 17-February-2011 – – Gujarat NRE Coke’s Australian subsidiary raises over Rs. 320 crores

Ahmedabad, 17th February, 2011. Gujarat NRE Coke Limited is pleased to
announce that its Australian subsidiary Gujarat NRE Coking Coal
Limited (ASX Code: GNM) has raised over Rs.. 320 crores through an
institutional placement done through book building mechanism.

The placement which opened on 16th February 2011 closed on the same
day. Supported by a wide group of new and high-quality institutional
investors, GNM raised Australian Dollars 72 million through the issue
of 100 million fully paid ordinary shares at 72 cents each.

Mr. Arun Kumar Jagatramka, Chairman remarked that the raising
demonstrated “the interest in Gujarat and its long-term prospects felt
by the institutional investors”. He further added that “the proceeds
from the capital raising will provide for valuable investment in the
Company’s two producing hard coking coal mines, NRE No.1 Colliery and
NRE Wongawilli Colliery, both of which are located south of Sydney in
Wollongong. GNM has previously announced plans to develop and
refurbish existing facilities at these mines with an aim of achieving
6 million tonnes per annum of coking coal production by 2014 – 2015.
This equity raising will provide important additional capital to
complement funding available through GNM’s debt facilities. GNM’s
overall funding package will provide for initial development activity
required to realise our objective of materially increased coking coal
production”.

With a view to increase the free-float and liquidity in trading of
GNM’s shares, Gujarat NRE Coke Limited did not participate in the
placement. After the allotment of the placement shares, the aggregate
shareholding of Gujarat NRE Coke Limited in GNM would come down from
~77 % to around 69 %.

UBS AG, Australia Branch acted as the sole lead manager, book runner
and underwriter of the Placement. Ernst & Young Transaction Advisory
Services Limited acted as financial advisor.