Essar Ports gets shareholders' nod to raise up to $1 bn

Essar Ports plans to increase its cargo handling capacity from 104 million tonnes per annum (MTPA), at present, to 194 MTPA

Private sector port operator Essar Ports (EPL) today said shareholders have approved its proposal to raise up to $1 billion through securities from domestic and international markets to fund expansion plans.

One of the country's largest port operators, EPL plans to increase its cargo handling capacity from 104 million tonnes per annum (MTPA), at present, to 194 MTPA.

The firm in a regulatory filing said shareholders have approved the "Issue of further shares, GDRs, ADRs, FCCBs, bonds, etc in domestic and foreign markets for an amount not exceeding $1 billion."

Essar Ports has four operational port terminals including the Vizag Iron Ore, Hazira, Vadinar and Paradip.

Earlier, Essar Ports had said that to meet the funding needs for expansion plans, the company "is exploring various options to raise fresh capital by issuance of either Equity Shares and/or Global Depository Receipts (GDRs), Foreign Currency Convertible Bonds (FCCBs) or any other security either by way of a public issue or a private placement."

EPL provides port and terminal services for liquid, dry bulk, break bulk, general cargo and small volumes of container cargo for specialised project equipment at its facilities.

It also has projects under implementation at Salaya in Gujarat and Paradip in Odisha, it had said.

Last month, EPL had said its operating capacity is expected to increase to 140 MTPA by March 2016 and 194 MTPA by 2018. The total capital invested till date is around Rs 10,000 crore.

Presenting the firm's results for the June quarter, its Managing Director Rajiv Agarwal had said, "We expect the economy to grow at a higher pace in the coming quarters. This along with availability of long term funds for infrastructure financing will give a boost to the sector."