Kolkata-based Austral Coke and Projects, engaged in the business of manufacturing LAM coke, is coming out with an initial public offering (IPO) of 7.26 million equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The company has fixed the price band at Rs 164 to Rs 196 a share. The issue will open on August 7 and will close on August 13. The net issue would constitute 27.72% of the post issue paid-up capital of the company.

Additionally, the company is also offering green shoe option of up to Rs 10.89 million equity shares which will constitute 25% of the fully diluted post issue capital.

Austral Coke is mainly manufacturing low ash metallurgical coke. It is also in the business of equipment rental, refractory and textile trading.

The company plans to use the IPO proceeds to finance its expansion. It is planning a 150,000 tonne per annum LAM coke unit and an 8 mw captive power plant through waste heat recovery. The project is coming up at Sindhudurg in Maharashtra.

Apart from this, the company also plans to utilize the funds for acquiring coal mines either in Indian or abroad and retire high cost debt.

The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE).

Allbank Finance, Prabhudas Lialladher, Saffron Capital Advisors and Ellara Capital (India) are helping the company in the process.