Resurgere Mines & Minerals India Limited is entering the capital markets on 11th August 2008 with a public issue of 4,450,000 Equity shares of Rs 10 each through 100% book building process. The price band has been fixed at Rs 263 to Rs 272 per Equity share of Rs 10 each. The issue closes on 13th August 2008. The issue comprises reservation of 2.50 lakh equity shares for eligible employees, leaving the net issue to the public of 42 lakh shares. The net issue would constitute
14.72% of the post issue paid-up capital of the Company. Resurgere Mines & Minerals India Ltd engages in the business of extraction, processing and sale of mineral products and exploration and development of mining assets. The company has been in the business for the last three years. The company intends to utilize the IPO proceeds of the Issue to part finance its plan for purchase of Plant and Machinery valued at Rs 128.56 crore for setting up of its own extraction and crushing facilities at the mines and purchase of six railway rakes worth Rs 116.36 crore to set up own logistics infrastructure facilities, besides meeting margin money requirement for working capital. The Company proposes to part finance the cost through term loans of Rs 860 million to be raised from banks, Rs 430 million through Private Equity funding from Merrill Lynch International and Rs 137.30 million through Pre-IPO allotment. The equity shares are proposed to be listed on BSE and NSE. Motilal Oswal Investment Advisors Pvt. Ltd is the BRLM for the Issue and PL Capital Markets Pvt. Ltd and Ashika Capital Ltd are the Co-BRLMs for the Issue.