The Hindu Business Line : Promoters plan hiking stake in GE Shipping

The board of directors of Great Eastern Shipping will be meeting on Tuesday to consider preferential issue of warrants convertible into equity shares of the company to the promoters and directors of the company.

The promoters of the company, is now led by its Executive Chairman, Mr K.M. Sheth, and his two sons - Mr Bharat K. Sheth and Mr Ravi K. Sheth. Ms. Asha Sheth is a director on the board, while late Sudhir Mulji family has no representation.

After the SEBI clearance, granting exemption of open offer, received by Mr Vijay Sheth, MD of Great Offshore (the demerged entity) early this month, Mr K.M. Sheth and his family decided to sell their 18.5 per cent stake in GOL for a consideration of about Rs 600 crore. Against this, Mr K.M. Sheth's family would be buying out a 3 per cent stake of Mr Vijay Sheth in Great Eastern Shipping.

The promoters are intending to shore up their stake in the company with the money received from the GOL stake sale, sources said. The price at which the warrants are to be issue and the deadline for its conversion into equity will be decided at tomorrow's board meeting.

Industry sources said the Sheth's have decided to increase their stake, especially as the shipping markets are at present relatively soft - and that too in the tanker segment, in which Great Eastern has a majority exposure.

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