Gujarat NRE Mineral Resources Ltd — the holding company of India’s largest independent metallurgical coke producer — has deferred its initial public offer (IPO) citing volatile market conditions.
GNMRL, which owns 45.92 per cent in the listed company Gujarat NRE Coke Ltd, has around 10,000 small shareholders who would have got an exit option following the listing of the company.
In a communication to the bourses, Gujarat NRE Coke chairman and managing director Arun Kumar Jagatramka said the “extreme volatility in the stock markets in India and abroad, has made it difficult for us to get correct and true valuation of the company”. He urged the shareholders to hold on to the stocks to unlock the real value in future.
During the last annual general meeting of Gujarat NRE Coke on September 10, Jagatramka had said he was looking to divest 25 per cent in the holding company. Promoters hold 90 per cent in GNMRL.
The GNMRL board has decided to offer one bonus for every two shares held to pacify the small investors. The Jagatramka family — the promoters — will forego their entitlement of bonus shares in favour of non-promoter shareholders.
In 2009, GNMRL had announced 1:1 bonus for non-promoter shareholders.
Retail shareholders entered GNMRL when the Jagatramka family made a private placement of shares few years back to existing shareholders of listed Gujarat NRE Coke.
Besides a controlling stake in the local met coke maker, the holding company also owns stake in Gujarat NRE Coking Coal Ltd, the Australian mining arm.
GNMRL, through its wholly owned subsidiary, holds 90 per cent in two onshore oil and gas exploration blocks in the prospective Canning Basin in Australia.
Satyakam Mishra
No comments:
Post a Comment