Majority Gujarat shareholder Jindal Steel (53.63%) previously signalled it would take up its full entitlement, which will inject about $58.15 million into the coal miner.

Under a minimum subscription case of raising this amount, Gujarat flagged that 34.39% would go to paying outstanding creditors, 30.83% was destined for working capital needs ($17.93 million), 24.2% was for interest repayments, 10.32% was for paying workforce salaries and 0.26% was for expenses associated with the share issue.

Under the maximum subscription case of raising $108 million, which would need significant retail investor support, Gujarat flagged paying $30 million to its outstanding creditors and boosting its working capital by $58.2 million.

The accelerated pro rata non-renounceable entitlement offer is based on issuing two Gujarat shares for every three held at an issue price of 8c each.

The institutional offer closed on Wednesday while the retail offer opens on Friday and closes on December 17.

New shares under the institutional component are expected to start trading on December 5 while the shares under the retail tranche are expected to trade from December 24.

Last week Gujarat revealed it faced a wind-up application from RUS Mining Services in October, along with statutory demands from “a few of its creditors” over unpaid amounts.

The last share offer to Jindal, plus a $50 million short-term loan facility it provided to Gujarat, helped the coal miner start to repay outstanding wages to its workforce from November 7.

Gujarat previously stopped making regular wage payments in September and has unpaid workforce superannuation commitments going back to March.