Gujarat NRE Coking Coal (ASX: GNM) is raising up to $108 million through a two for three entitlement offer priced at $0.08 per share.
The funds will be used to repayment a loan and interest, creditors as well as for working capital and ongoing funding needs.
The entitlement offer will be carried out in two parts, an accelerated offer to eligible institutional shareholders of up to $58.15 million and an offer to retail shareholders totalling $49.85 million.
India’s Jindal Steel and Power, the company’s largest shareholder, has indicated that it will support the rights issue for its full entitlement of about $58 million.
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