AHMEDABAD, July 21: Gujarat government's wholly-owned and its only blue chip company Gujarat Mineral Development Corporation (GMDC) on Monday decided to go for public issue in mid-September, divesting 26 per cent of its holding at Rs 130 a share (including a premium of Rs 120).The exact date is likely to be decided at the annual general meeting and documents will be presented to the Registrar of Companies on August 4, according to a highly placed source here.In 1996-97, the company has earned Rs 125.38 crores as profit before tax and Rs 87.07 crores as profit after tax, the corresponding figures for the previous years being Rs 70.20 crores and Rs 39.05 crores respectively, registering an increase by over 70 per cent. It has yet to decide the dividends for the last fiscal year. Last year was also important for it as it paid back all loans and dues to the state government, banks and other FIs.Although the state government had decided to partially privatise the company long back as per one of the pre-requisites to get ADB and other foreign loans, it was only in last November that the GMDC had seriously began negotiations with bankers and other financial institutions in this direction.In between, GMDC had fixed certain tentative dates to go public. At one point, when the market was buoyant, the company had decided to quote up to Rs 400 a share. Its SEBI card expired in March-end. Procedural requirement for furnishing audited accounts figure for the preceding six months resulted in yet another postponement. Then came the CRB scam and its financial advisers suggested postponing the step to enter capital market for a while.In the meantime, the source said, several other financial institutions, including IDBI, UTI, LIC and GIC, had evinced interest in buying GMDC shares,On Monday, the GMDC had a detailed discussion with its lead bankers, notably SBI Caps and Peregrine Capital India. Prospects of quoting higher premium rates was also discussed at the meeting but ultimately they decided at Rs 120 a share, the source said.It was noted that although GMDC held mining rights over 50 per cent of proven lignite deposits, besides other important minerals.
