I have thought the capital raising through...If in fact that is...

I have thought the capital raising through...

If in fact that is the way they chose to go?

It could be a rights issue, SPP, convertible notes, or any other form of capital injection, but it would appear that they will be issuing more shares.

If we look at the new NRE No.1 IPO structure, they have about 120m more shares on issue than GUJ, but more or less comparable resources and production models, with GUJ arguably far more advanced and facing less cap ex...the comparitive shares on issue however raise an interesting point.

If GUJ were to issue another 120m shares at say 41c to bring them on par with the IPO, they would raise approximately $49m.

Funny about that!

at or about current prices (40c), they will be issuing another 120m shares.

Given the IPO was closed early oversubscribed, it is not hard to see where much of the interest for any such placement would come from, especially in light of the Indian central banks recent ruling on overseas investment...in fact, I suggest the vast majority of any placement would go overseas.

Given GUJ is more advanced than the IPO on the coal front, with the added metals/exploration interests...and more or less similar in every other way...I feel there is an argument for any placement in GUJ to be conducted at least for a similar price as the IPO...which of course is 50c.

This would result in fewer shares being issued to pay for the BHP acquisitions, or indeed, more cash in the pocket if they chose to do the full 120m issue.

Food for thought?

Cheers!