Essar Shipping cruises on plans to raise $1bn
Shares of Essar Shipping were locked on 5 per cent upper circuit after The Economic Times reported that the company is raising around $1 billion through a mix of equity and quasi-equity instruments.
By INDIATIMES NEWS NETWORK |
MUMBAI: Shares of Essar Shipping were locked on 5 per cent upper circuit after The Economic Times reported that the company is raising around $1 billion through a mix of equity and quasi-equity instruments.
At 2:28 pm, the stock was at Rs 228.65. It has gained 7.17 per cent in the past one week. Around 513772 shares were traded in the counter.
A majority of the corpus will be raised as equity, preferably through a qualified institutional placement. Many foreign investors are said to have lined up to pick up equity in the company.
The fund raising is said to bring down ESL’s debt, currently pegged at around $2.3 billion on a consolidated basis. It will also help the promoters lower their stake in the company, over 80 per cent post the proposed merger of ESL with Essar Oilfields Services, to around 75 per cent.
The funds will also be used to fund its proposed capital expansion projects at its Vadinar Oil Terminal, primarily catering to the import-export needs of Essar Oil, a group company.
At 2:28 pm, the stock was at Rs 228.65. It has gained 7.17 per cent in the past one week. Around 513772 shares were traded in the counter.
A majority of the corpus will be raised as equity, preferably through a qualified institutional placement. Many foreign investors are said to have lined up to pick up equity in the company.
The fund raising is said to bring down ESL’s debt, currently pegged at around $2.3 billion on a consolidated basis. It will also help the promoters lower their stake in the company, over 80 per cent post the proposed merger of ESL with Essar Oilfields Services, to around 75 per cent.
The funds will also be used to fund its proposed capital expansion projects at its Vadinar Oil Terminal, primarily catering to the import-export needs of Essar Oil, a group company.
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