Essar Shipping
Limited Redeems Indian Rupees Non Convertible Debenture
of Rs. 126 cr. (USD 26.11 mn)
December 09, 2002
Essar Shipping had raised
Rs. 176 cr. (USD 36.47 mn) by way of partly convertible
debentures in April, 1993. The issue was subscribed by
the Public, Banks (Punjab National Bank) Financial Institutions
(LIC and GIC) and Mutual Funds (UTI, SBI Mutual Fund and
GIC Mutual Fund). The funds raised, were utilised to finance
its fleet expansion programme. Out of Rs. 176 cr, Rs 50
cr. (USD 10.36 mn) was converted into equity in December
1993. The balance non-convertible portion of Rs. 126 cr.
(USD 26.11 mn) which had a coupon rate of 16% has been
redeemed fully in November, 2002. With this redemption,
the Book Debt - Equity ratio of the company now stands
at 0.63:1.
Essar Shipping Ltd. (ESL) is a diversified shipping
company, belonging to the ESSAR Group, which has a strong
presence in core sectors like oil, steel, shipping, telecom
and construction. The Company is publicly listed in India
at six stock exchanges, including Bombay Stock Exchange.
The company is focusing on providing complete transportation
solutions in the energy transportation business.
The company has a fleet
of 35 vessels including Suezmax Tankers, Bulk Carries,
Product Tankers, Offshore supply vessels, Mini Bulk carriers,
Tugs and Dumb Barges.
Essar Shipping has been a consistent
performer having posted profits since inception in the
year 1975. For the financial year ended March, 2002, ESL
posted a revenue of Rs. 490 cr. (USD 101.55 mn) and a net
profit of Rs. 73 cr. (USD 15.13 mn).
Essar Shipping Limited
(ESL), one of the world's leading integrated sea logistics
companies is focused at providing optimal integrated sea
logistics solutions through a diversified fleet of vessels,
storage facilities and supply chain management services.
ESL operates in two main
segments, The Energy Transportation Group, which provides
sea transportation management services to the global energy
industry. And The Integrated Coastal Transport (ICT) Group,
which provides supply chain management services for sea
transportation of bulk cargo and refined products.
ESL is
a global leader in providing end to end sea transportation
solutions, working jointly with clients to provide cost
optimal and integrated sea logistics solution.
CORPORATE