The Hindu : Business : Austral Coke fixes price band

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Tuesday, Aug 05, 2008
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Business

Austral Coke fixes price band

Special Correspondent

NEW DELHI: Austral Coke and Projects Limited, mainly engaged in the manufacture of low ash metallurgical coke (LAM coke), on Monday announced that its initial public offering (IPO) will hit the market on August 7.

The company is proposing an IPO of 72.60 lakh equity shares of Rs. 10 each through the 100 per cent book building process. It is also in the business of equipment rental, refractory and textile trading.

The issue will have additionally ‘greenshoe option’ comprising 10.89 lakh equity shares.

Issue opens on August 7

The issue will open on August 7 and close on August 13 with a price band of Rs. 164-196 per share.

Rishi Raj Aggarwal, CEO of the company, said that the objective of the issue is to part finance its expansion plan involving setting up of 1.50 lakh tonnes per annum of LAM coke and setting up of 8 MW captive power plant (CPP) through waste heat recovery. The project is coming up at Sindhudurga in Maharashtra.

Besides the project, the company may utilise balance funds raised for acquiring coal mines either in India or abroad and may retire high cost debt.

Availability of quality coal on a regular basis will be always critical for running the operations successfully.

Pre-IPO placement

The company has successfully concluded pre-IPO placement of 27.40 lakh equity shares to Somerset India Fund at Rs. 196 per share aggregating Rs. 53.70 crore.

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