Essar Oil gains as promoter firm to convert FCCBs into shares

Essar Oil rose 1.47% to Rs 55.10 at 15:11 IST on BSE after the company said it has received a notice from promoter company, Essar Energy Holdings seeking conversion of FCCBs aggregating $262 million into equity shares.

The announcement was made during trading hours today, 4 December 2013.

Meanwhile, the S&P BSE Sensex was down 166.28 points or 0.8% at 20,688.64.

On BSE, 13.20 lakh shares were traded in the counter as against average daily volume of 3.13 lakh shares in the past one quarter.

The stock hit a high of Rs 57.35 and low of Rs 53 so far during the day.

Essar Oil said it will allot 3.88 crore equity shares at Rs 138 per share on conversion of 1,150 foreign currency convertible bonds (FCCBs) of $100,000 each aggregating to $115 million which were issued on 15 June 2010 to Essar Energy Holdings. The company will also allot 4.50 crore equity shares at Rs 153 per share on conversion of 1,470 FCCBs of $100,000 each aggregating to $147 million which were issued on 9 July 2010 to Essar Energy Holdings.

The promoter group company Essar Energy Holdings held 19.83% stake in Essar Oil (as per the shareholding pattern as on 30 September 2013).

Essar Oil said that the company will be holding a meeting of Committee of Directors (Capital Issues) shortly to allot shares on conversion of FCCBs into equity shares.

Essar Oil reported a net loss of Rs 71 crore in Q2 September 2013 as against net profit of Rs 105 crore in Q2 September 2012. Net sales rose 22.6% to Rs 25695 crore in Q2 September 2013 over Q2 September 2012.

Essar Oil is a fully integrated oil and gas company of international scale with strong presence across the hydrocarbon value chain from exploration and production to refining and oil retail.

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