Essar Shipping makes debut on bourses

MUMBAI: Essar Shipping today listed on the bourses as a separate entity pursuant to its demerger from Essar Shipping Ports & Logistics with the shares closing at Rs Rs 29.70 apiece on the BSE.

The stock listed at Rs 95 at BSE, but could not sustain the momentum and closed at Rs 29.70 apiece. In the intra-day trade, it touched a low of Rs 29.

On the National Stock Exchange the stock listed at Rs 40. It ended at Rs 29 apiece.

Essar Shipping announced last month that it has received approval from the Securities and Exchange Board of India (SEBI) for the listing of the company's shares on the stock exchanges.

This is pursuant to the demerger of the erstwhile Essar Shipping Ports & Logistics Ltd (ESPLL) into Essar Ports Ltd and Essar Shipping Ltd.

It is to be noted that in compliance with the Gujarat High Court approved demerger scheme, ESPLL had been renamed as Essar Ports Ltd and has been trading since May 31 this year on the NSE and BSE.

Essar Shipping will have three broad areas of operations: ocean shipping, oil field services and logistics. At present, ocean shipping and logistics contribute more to the company's business.

As per the scheme of arrangement, at the time of the demerger, the shareholding of Essar Shipping Ports & Logistics had been split in the ratio of 2:1. For every three shares of ESPLL held, shareholders received two shares of Essar Ports, and one share of Essar Shipping.

The Essar Group is a multinational conglomerate and a leading player in the sectors of steel, oil and gas, power, BPO and telecom services, shipping and ports.