Essar Shipping gets Sebi nod for listing of shares

Essar Shipping (ESL) today said it has got approval from the Securities and Exchange Board of India (Sebi) for listing the company shares on bourses.

The listing is pursuant to demerger of the erstwhile Essar Shipping Ports & Logistics.

"...In compliance with the Gujarat High Court approved demerger scheme, Essar Shipping Ports & Logistics had been renamed as Essar Ports and has been trading since May 31 2011 on NSE and BSE. The resultant company, Essar Shipping, had been awaiting the formal approval from SEBI for commencement of trading, which has now been accorded," the company said in a statement.

As per the scheme of arrangement approved by the Gujarat High Court, 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.

Essar Shipping has a diversified fleet of 26 vessels, including VLCCs, Capesizes, Supramaxes, mini bulk carriers and tugs.

The company has placed orders for 12 new ships, which are expected to join the fleet over the next 24 months.

"A sizeable part of the capacity is deployed on long-term contracts, insulating the company from the volatility of spot markets," the company said.

It added that the Oilfields Services business provides contract drilling services to oil & gas companies across the globe. This business owns one semi-submersible rig and 12 land rigs. The company has ordered two new jack-up rigs, which will be joining the fleet over the next 18 months, it added.

The logistics business, the company said, manages a fleet of over 5,000 trucks for inland transportation of steel and petroleum products.

The Essar Group is a multinational conglomerate and a leading player in the sectors of Steel, Oil & Gas, Power, BPO & Telecom Services, Shipping and Ports.