Gujarat NRE Coke to consider issue of Rs 550cr; shares rise

Gujarat NRE Coke shares rallied three percent Thursday after the company said its board is considering  a fund-raising proposal on Monday.

The board of directors of the company is going to consider issue of securities (including foreign currency convertible bonds) for an amount not exceeding USD 100 million or Rs 550 crore, whichever is higher, on April 29, according to a release sent to exchanges.

"The board will also consider to make investment/loan and/or give guarantee/security in excess of limits under Section 372A of the Companies Act, 1956."

At 10:06 hours IST, the stock was up 3 percent to Rs 17.20 on Bombay Stock Exchange.

The share touched its 52-week high Rs 23.80 and 52-week low Rs 16.55 on 10 January, 2013 and 23 April, 2013, respectively.

Market capitalisation of the company currently stands at Rs 1,070.47 crore.