Jindal Steel has increased its stake in Gujarat NRE after investing a further $58 million into the company, adding a further 726 million shares its portfolio.
The company announced that the first round of its rights of issue share deal had been successful.
Jindal Steel already owns more than 53 per cent of the Illawarra coal miner after a share deal in October, and was given the first chance to take up the accelerated rights issue this week.
Documents submitted to the ASX shows $6 million of the new capital will be used to pay workers and about $20 million will help clear debts with creditors and suppliers.
$18 million will be used to run the company, while $14 million will be paid back to Jindal.
Gujarat plan to extend the rights of issue to other shareholders in an allowance which would see them buy two shares for every three at 8 cents per share.
About 625 million new shares will be up for sale, with the company aiming to raise a further $49.85 million.
The total rights issue is expected to be finalised by mid-December.