Board of Gujarat NRE Coke Ltd today has approved the merger of unlisted group firm Bharat NRE Coke Ltd with the Kolkata-based company. The merger will boost Gujarat NRE’s met coke production capacity by 34%.
Bharat NRE’s shareholders will get two shares of Gujarat NRE for each held, according to the scheme of amalgamation approved by the latter’s board. Amalgamation would result in increase of paid up capital of GNCL (Gujarat NRE) by approximately 8.8%.
Bharat NRE has a met coke producing facility at Dharwad in Karnataka, with annual installed capacity of 320,000 tn. Gujarat NRE has capacity to produce 930,000 tn met coke annually.
Speaking on approved scheme of amalgamation Gujarat NRE Chairman and Managing Director Arun Kumar Jagatramka said “It will bring administrative as well as operational rationalisation, organisational efficiencies leading to economies of scale as well as optimal utilisation of available resources”.
He further added that, “We also expect that we will be able to minimise costs due to more focussed operational effort”.