Essar Oil launches GDS, offers conversion option

Essar Oil has established a global depository share (GDS) programme giving an option to FCCB holders to convert FCCBs into GDSs in addition to the original option to convert them directly into equity shares.

According to a release issued by the company to the BSE today, one FCCB of $1,000 each is convertible into 3,519 equity shares of the company. "With the establishment of the GDS programme, FCCB holders have an additional option to convert each FCCB into 23 GDSs with each GDS representing 153 equity shares of Rs 10 each, and the conversion price remaining the same as per the original offering," the release added.

The release said that FCCB holders holding FCCBs aggregating $166 million have exercised the option to convert FCCBs into GDSs, and the company has, on March 31, 2005, issued and allotted 58,41,54,000 equity shares of Rs 10/- each in favour of the overseas depository, The Bank of New York, which are represented by 38,18,000 GDSs.

"The company proposes to list the GDSs with the Luxembourg Stock Exchange in the near future," the release said.