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Essar Ports likely to get listed on Tuesday

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 2:09 AM IST

Essar Ports, the demerged entity of Essar Shipping, Port and Logistics (ESPLL), is likely to get listed on the bourses by Tuesday, while the other demerged unit, Essar Shipping would get listed by June.

"In all likelihood, Essar Ports will start trading on the exchanges in next two to three days, most likely on Tuesday," a source said.

Post listing, the ports company will be India's second largest private port company with 88 million tonnes per annum (MTPA) capacity, with a target to reach 158 MTPA by 2013, as per ESPLL.

ESPLL currently has a share capital of Rs 615 crore and it will be split into Rs 410 crore for Essar Ports Limited and Rs 205 crore for Essar Shipping Ltd.

Earlier this month, Essar Shipping, Port and Logistics (ESPLL) had completed the demerger process for hiving off the company in two entities --  Essar Ports Ltd and Essar Shipping Ltd.

According to the demerger plan, ESPLL will become Essar Ports Ltd, while the Shipping, Logistics and Oilfield drilling businesses of the erstwhile entity will be spun off into a separate company called Essar Shipping Ltd.

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Shares of ESPLL has already stopped trading on the Bombay Stock Exchange from May 18 on account of demerger.

As per the agreement, for every three shares held of ESPLL, shareholders will get two shares of Essar Ports Ltd and one share of Essar Shipping Ltd. The share capital will be split in a ratio of 2:1.

Essar Ports has a capacity of 88 MTPA at present which includes 58 MTPA at Vadinar and 30 MTPA at Hazira.

The company has committed Rs 9,300 crore towards this business, of which Rs 6,150 crore has already been invested.

The Essar Ports will be headed by Rajiv Agarwal as Managing Director, while K K Sinha and Shailesh Sawa will become CEO and CFO, respectively, ESPLL had said.

Essar Shipping, which is expected to be listed by June-end, will be led by A R Ramakrishnan as its Managing Director.

Post listing, the shipping business (Essar Shipping), with a diversified fleet of 26 vessels, will become the second largest Shipping and Oilfields Services Company in the private sector.

The new company will also get 12 new ships in the next two years, orders for which was placed by ESPLL.

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First Published: May 29 2011 | 11:35 AM IST

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