Resurgere Mines

Resurgere Mines & Minerals India has filed its DRHP with sebi on 18/12/07 to enter the capital market with an IPO of 50 lakh  equity shares of Rs 10 each through 100% book building process. The net issue would constitute 16.64% of the post issue paid-up capital of the company.

The company proposes to list the shares on BSE and NSE. The BRLM to the issue is Motilal Oswal Investment Advisors.

Resurgere Mines & Minerals India is engaged in the business of extraction, processing and sale of mineral products and exploration and development of mining assets. Its products range includes various forms of iron ore such as  lump ore, size ore, calibrated lump ore and iron ore fine and bauxite. It sells all these products domestically except iron fines which it exports to China. The company currently operates in two locations in Orissa and plans to start operations in Jharkhand soon. It has entered into a long term contracts for the mines in Orissa and has applied for iron ore mining lease in Sindhudurg dist in Maharashtra. Merrill Lynch has acquired a 12.74%  stake in the company for Rs 63 crore. The company is a recognized Star Trading House of India.

The company proposes  to use the proceeds from the issue to part finance the purchase of plant & machinery for setting up of extraction and crushing facilities at the mines at a cost of Rs 12.86 crore and for purchase of railway rakes to set up the company's own logistics infrastructure facilities involving a cost of Rs 11.64 crore

The company's operational income and net profit for the financial year ending March 31, 2007 was Rs 164.24 crore

and Rs 31.64 crore respectively and for the four months ending July 31, 2007, it was Rs 72.40 crore and Rs 18.47 crore respectively.