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Essar Shipping Ltd on Thursday announced that it has received approval from SEBI for the listing of the company's shares on the stock exchanges.
This is pursuant to the demerger of the erstwhile Essar Shipping Ports and Logistics Ltd (ESPLL) into Essar Ports Ltd and Essar Shipping Ltd.
In compliance with the demerger scheme approved by Gujarat High Court, ESPLL was renamed as Essar Ports Ltd and has been trading since May 31, on the NSE and BSE. The resultant company, Essar Shipping Ltd, had been awaiting formal approval from SEBI for commencement of trading which has now been accorded.
Essar Shipping Ltd would also be listed on the NSE and BSE, according to a company statement here.
Share split
According to the scheme of arrangement approved by the Gujarat High Court, the shareholding of ESPLL 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 Ltd 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 and COAs, insulating the company from the volatility of spot markets.
The oilfields services business provides contract drilling services to oil and 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.
The logistics business provides end-to-end logistics services — from ships to ports, lighterage services to plants, intra-plant logistics and dispatching finished products to the final customer. This business owns transhipment assets to provide lighterage support services, and onshore and offshore logistics services. It manages a fleet of over 5,000 trucks for inland transportation of steel and petroleum products.
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