About the company and the issue
RMMIL is engaged in the business of extraction and processing of Run of the Mine (RoM) through long-term contracts with leaseholders in Orissa and Jharkhand. The company primarily sells calibrated lump ore (CLO) in the domestic market and exports iron ore fines to China.
Initially, RMMIL was incorporated under the name of Exfin Shipping (India) Private Limited in March 1987. Mr. Subhash Sharma, who took over the company in 2003, started the iron ore business. In 2004, it entered into long-term raising and purchasing contracts with leaseholders in Orissa and Jharkhand for the extraction and processing of iron ore. In 2006, the company was renamed as Resurgere Mines & Minerals India Limited. Prior to acquiring RMMIL, Mr. Subhash Sharma was engaged in bulk pharmaceuticals trade.
Currently, RMMIL does not possess the equipment required for mining. Therefore, it has outsourced its machinery requirement to sub-contractors, while it brings the requisite technical expertise for the extraction of ore. RMMIL purchases the extracted ore (RoM) from the leaseholder, and processes the same into CLO and its byproduct, iron ore fines. It also outsources this sizing process to sub-contractors.
RMMIL aims to raise Rs 1 billion to 1.1 billion by this proposed public issue of 4,200,000 equity shares. To cut down its dependence on third parties for its mining and processing operations, the company plans to use the funds for the purchase of its own machinery for the extraction and beneficiation of iron ore. It also plans to invest in the Wagon Investment Scheme, initiated by the Indian Railways, for the purchase of railway rakes for the movement of iron ore fines.
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