Calcutta, Nov. 9: Gujarat NRE Coke plans to raise Rs 400-450 crore through a preferential allotment to finance its expansion plans.

The largest non-captive, low-ash metallurgical coke maker in the country plans to issue four crore convertible warrants on a private placement / preferential basis, subject to the approval of shareholders.

In a notice to the Bombay Stock Exchange, the company said a circular had been sent on November 8 to the members of the board for their consideration and consent.

A company official said the warrants were likely to be priced at Rs 110-115 apiece, going by the prescribed formula of market regulator Sebi.

The warrants would be converted into shares after 18 months.

Sources said the issue would be split between the promoters — the Jagatramka family — and financial institutions.

However, the promoters’ contribution is likely to be more, indicating that their holding may go up in the company.

The private placement is coming up at a time when the met coke market is witnessing a boom.

Led by the global demand, especially from China, prices have soared to heady heights.

The international spot prices on a free-on-board basis are hovering at $350-360 per tonne. In India, the prices are at Rs 18,000, or $450 a tonne, taking into account the import parity level.

The company gets 40 per cent of its coking coal, which is converted to met coke, from its captive mine in Australia. Met coke is used mainly in the steel industry

During the Muhurat trading on Friday, the company stock closed at Rs 122.70, up Rs 10.70 or 9.55 per cent.