Shipping co Mercator acquires rig from Singapore firm for Rs 1,000 cr

MUMBAI: Shipping company Mercator Lines on Monday said it has acquired a rig from Singapore-based shipyard Keppels FELS for Rs 1,000 crore.

The company, through its Singapore subsidiary Mercator Offshore, has taken delivery of the jack-up rig last week, Mercator Lines said in a filing to the Bombay Stock Exchange.

"Mercator has always believed in expanding during tough times as we believe that companies which invest wisely during such times shall be in a better position to take advantage of any improvement in the business cycle," Mercator Lines Executive Chairman HK Mittal said.

The rig has the capability to work at a depth of 350 feet under water and has a drilling capability of 30,000 feet, the filing said.

"While shipping remains its mainstay, the expansion undertaken during the last 24 months has opened up new revenue streams for Mercator which hedges its revenue and profits from a downturn in any of its business ensuring stability in uncertain times like these," Mittal added.

Shares of the the company closed at Rs 23.35, up 4.24 per cent on the BSE.