Essar Ports > Company History > Infrastructure - General > Company History of Essar Ports - BSE: 500630, NSE: ESSARPORTS

Essar Ports

BSE: 500630|NSE: ESSARPORTS|ISIN: INE282A01024|SECTOR: Infrastructure - General
Essar Ports is not traded in the last 30 days
Essar Ports is not traded in the last 30 days
Company History - Essar Ports
YEAR                                                 EVENTS
 1975 - The Company was Incorporated on 5th April, at Bangalore in
               Karnataka State.  The Company Operate fleet of crude
 oil and
               product oil tankers, off-shore supply vessels, diving
               vessel and bulk carriers.
            - The Company is a part of the Essar Group of Companies
 founded by
               the late Nand Kishore Ruia.  The Group was engaged in
               activities of which the shipping activities were
 carried on by
               Essar Bulk Carriers Ltd., a wholly owned subsidiary of
               Investments Ltd. (EIL).  Karnataka Shipping Corporation
 Ltd. was
               incorporated on 5th April, 1975.  It was promoted in
 the joint
               sector by the Karnataka Government.
            - Pursuant to a Scheme of Amalgamation approved by the
 High Courts
              at Bangalore and Chennai, Essar Bulk Carriers Ltd., was
              with Karnataka Shipping Corporation with effect from 1st
              1983.  The name of KSCL was subsequently changed to
              Shipping Ltd.
 1984 - 161,39,630 No. of equity shares issued during 1983 without
              payment in cash to members of Essar Bulk Carriers Ltd.
 on its
              merger with the Company in prop. 5 equity shares of
              Shipping for every equity share of Essar Shipping for
              equity share of Essar Bulk Carriers Ltd. Pref. shares
              during 16.12.1990/93.
 1985 - The Company was considering diversification into
               iron and steel, off-shore and on-shore construction,
              of petroleum refineries, etc.
           - The Company proposed to enter into the fields of
 manufacture of
              sponge iron, off-shore drilling for oil exploration and
              gas resources, dredging operations for deepening ports,
              etc.  The Company proposed to participate to the extent
 of Rs 15
              crores in the equity capital of Essar Gujarat Ltd.,
 which was
              setting up a sponge iron project.
           - Necessary approvals were received for investment of Rs
             crores in the Equity of Essar Gujarat Ltd., for the
 setting-up of
             hot briquetted sponge iron plant in Hazira, Gujarat.
           - In August, the Company issued 50,00,000 No. of equity
 shares of
             Rs 10 each linked to 3,00,000 - 13.5% secured redeemable
             non-convertible debentures of Rs 100 each, both at par. 
 Of the
             issue, 2,50,000 No. of equity shares and 15,000
 debentures were
             reserved for preferential allotment to employees of the
             and 1,00,000 shares and 6,000 debentures for business
             The remaining 46,50,000 shares and 2,79,000 debentures
             offered to the public.  Both preferential and public
 offer were
             fully taken up.
          - These 13.5% debentures would be redeemed at a premium of
 Rs 5 per
             debenture on the expiry of 10 years from the date of
             with an option to the Company to redeem the same at any
             after seven years in one or more instalments.
 1987 - With the addition of 8 ships, the Company owned and operated
              product/crude oil carriers, 5 off-shore supply vessels,
              multi-support vessels, 5 bulk carriers and 1 drill
           - Approval in principle was received from the Government of
             for acquisition of 12 vessels, 6 bulk carriers, 1
             vessel, 1 chemical tanker, 1 product carrier, 1 drill
 ship and 2
             LPG Ammonia carriers.
           - During February, the Company issued 17,50,000 - 13.5%
             partly convertible debentures of Rs 225 each for Rs 39.38
             out of which the following debentures were reserved for
             preferential allotment:
           - (i) 5,00,000 debentures to the existing shareholders of
             Company other than Essar Investments Ltd. (all were taken
           - (ii) 2,50,000 debentures to non-resident Indians on
             basis (only 2,25,240 debentures taken up)
           - (iii) 87,500 debentures to employees (including Indian
             directors)/workers of the Company and associate companies
             16,290 debentures taken up),
           - (iv) 35,000 debentures to business associates of the
 Company (all
              were taken up),
           - (v) 2,22,000 debentures to UTI (all were taken up) and
           - (vi) 22,220 debentures to General Insurance Corporation
 of India
             (all were taken up).
           - The balance 6,33,280 debentures, along with the
              portion of 95,970 debentures out of the preferential
 quota, were
              offered for public subscription during February 1987. 
              4,37,500 debentures for Rs 9.84 crores were allotted to
              oversubscription (8,750 debentures to the business
 associates of
              the Company, 1,25,000 debentures to the shareholders of
              Company and 3,03,750 debentures to the public).
           - These debentures comprised a non-convertible part of Rs
 75 and a
              convertible portion of Rs 150.  Rs 75 of the convertible
              of Rs 150 was to be converted into five fully paid
 equity shares
              of Rs 10 each at a premium of Rs 5 per share on the
 expiry of six
              months from the date of allotment and the remaining Rs
 75 was to
              be converted into five fully paid equity shares of Rs 10
 each at
             a premium of Rs 5 per share on expiry of twelve months
 from the
             date of allotment of debentures.
           - The non-convertible portion of Rs 75 per debenture would
               redeemed at par at the end of 7th year from the date of
              of the debentures.
           - 102,01,550 No. of equity shares issued (prem. Rs 5 per
 share) on
             15.10.1987 in conversion of debentures.
 1989 - It was proposed to acquire modern vessels such as Afframax
              tankers, LPG carriers, Product Tankers and Bulk
           - The Company made an issue of 40,00,000 - 14% secured
              non-convertible debentures of Rs 100 each on rights
 basis to the
              members and debentureholders of the Company.
           - 1,12,68,950 No. of equity shares issued (prem. Rs 5 per
 share) in
              terms of the conversion of debentures.
           - 2,51,100 No. of Equity shares issued (Pref. Rs 5 per
 share) on
              conversion of debentures, 8,50,000-14% cumulative
              pref. shares issued to financial institutions
 1990 - Six mini bulk carriers and a product tanker were added to its
              fleet.  The Company proposed to undertake the third
              envisaging acquisition of bulk carriers, tankers and
              supply vessels.
           - The Company issued 15,00,000-14% secured redeemable
              non-convertible debentures of Rs 100 each to financial
              institutions on private placement basis.
 1991 - Two Suezmax tankers of 1,40,000 DWT each and three mini bulk
              carriers were added to its fleet as a part of the third
 phase of
              its expansion programme.
           - During July, the Company made an open offer to the
              shareholders of South India Shipping Corporation, Ltd.
              for acquisition of an aggregate minimum of 1,20,000 No.
 of equity
              shares of Rs 100 each of SISCO, representing 20% of the
              voting capital of SISCO in the proportion of 50 equity
 shares of
              Rs 10 each fully paid-up of the Company and Rs 65 in
 cash for
              every one equity share of Rs 100 each held in SISCO.
           - 16,800 No. of equity shares issued (prem. Rs 5 per share)
              conversion of debs.  39,40,550 equity shares allotted
              shareholders of SISCO pursuant to open offer made by the
 1993 - In addition to the few suezmax tankers, the company also added
              tugs, 44 barges and 1 mini bulk carrier for meeting the
              increasing cargo transportation requirement of Essar
 Gujarat Ltd.
              for its steel plant at Hazira.
           - The Company issued 2,51,86,190-16% partly convertible
              of Rs 70 each at par with a detachable warrant attached
 on rights
              basis in the proportion of one debenture: 2 equity
 shares held.
              Another 1,30,000-16% partly convertible debentures of Rs
 70 each
              were offered to the employees.
           - Part A of Rs 20 of each debentures will be compulsorily
             into one equity share of Rs 10 each at a premium of Rs 10
             share on the expiry of six months from the date of
 allotment of
           - Each detachable warrant attached to Part B of Rs 50 of
             debenture will entitle the holder to one equity share of
 Rs 10 at
             a premium of Rs 40 and will be called up at anytime
 between 1st
             June 1993 and 30th June, 1994, as may be decided by the
             Part B of Rs 50 of each debenture if not converted into
             will be redeemed at par in three instalments of Rs 20, Rs
 15 and
             15 on the expiry of 6th, 7th and 8th year respectively
 from the
             date of allotment of the debentures.
          - The Company obtained the approval from Government of India
              the insurance of Equity to foreign investors in the form
 of GDRs
              for USD 172.50 million including retention of Greenshoe
 option of
          - 9,000 shares issued on conversion of debs.  2,51,98,729
             issued on conversion of 16% PCD converted on 18th Dec.
             11,49,350 shares allotted on 23rd Nov. 1994 to SCICI Ltd.
             terms of loan agreement, 200,00,000 shares at a prem. of
 Rs 70
             per share to NRIs on private placement basis.
 1994 - The Company proposed to acquire modern large sized vessels as
               when market condition showed favourable trends for
            - The Company entered into a joint venture agreement with
               Shipping Corporation Ltd., Chennai to form a joint
               company under the name and style of Essar Chennai
 Shipping Co.
                Ltd. at Tamilnadu to cater to the coal transportation
               requirements of Tamilnadu Electricity Board to meet
               increasing demand of its thermal power station.
            - As per the agreement, Essar Group would be holding 51%
 of the
              share capital of Essar Chennai Shipping Co. Ltd.
            - The State Bank of India has the right to acquire,
               conversion, fully paid-up equity shares of the Company
                to 100% or any part of the outstanding loan amounts,
 at par, the
               option being exercisable on one or more occasions at
 any time
               during the currency of the loans under the SAFAUN
 scheme availed
               of by the Company.
            - 23,03,900 shares of Rs 5 per share were allotted on
               interest with conversion option on NCD-13.5%
               debentures in 1987.
            - On 26th December, the Company allotted 248,28,377 No. of
               shares of Rs 10 each on rights basis at a premium of Rs
 15 per
               share in the ratio of 1:4.
 1995 - The Approval in principle was received from the Government of
               India for acquisition of three shallow draft bulk
 carriers of
               43-45, one DWT each by way of new building.  Also,
               was sought from Tamil Nadu Electricity Board for a long
               contract of affreightment for bulk carriers.
            - 12,200 No. of equity shares allotted as on conversion
               remaining portion of warrants.
 1996 - The Company operated its fleet of bulkers, tankers and OSVs
              13,102 days as compared to 10,210 days in the previous
 year.  Dry
              bulk carrier freight rates witnessed considerable fall.
           - The Company proposes to set up a petro port project at
             Jamnagar, Gujarat.
           - 481,44,480 No. of equity shares issued to erstwhile South
              Shipping Corpn. Ltd. pursuant to the scheme of
 1997 - The Company operated its fleet of bulkers, tankers, and OSVs,
              with 98% efficiency for 3931 days as against 4004
              operating days.
           - The two shipping companies in the Essar group - Essar
              and South India Shipping Corporation (Sisco) - are being
              into one entity.
            - Essar Shipping Ltd. proposes to diversify into port
               and related areas.
            - Essar Shipping has tied up a Rs.763.20 crore (2
              syndicated foreign currency loan through the Bank of
              Scotia, in order to retire the company's existing
              currency and rupee term borrowings.
            - Essar Shipping has a diversified fleet of 22 ships,
 while SISCO
               has a fleet strength of 11 ships. The company's fleet
               six modern double hull bottom Suezmax oil tankers, an
 ore bulk
               carrier, and oil carriers, four product carriers, four
               vessels, seven bulk carriers, and 11 mini-bulk
 1998 - The company proposes to set up a petro-port terminal project
               Vadinar, Jamnagar, Gujarat for the receipt, handling,
               and dispatch of crude oil and petroleum products.
           - The second largest shipping company in India, Essar
              Ltd, mortgaged its vessels to raise a $ 191 million term
               facility to refinance the company's existing banking
            - Essar Shipping Ltd, signed a 1 mn loan deal with the
 Bank of
              Nova Scotia Asia Ltd., the largest-ever for the Indian
               industry.  The loan facility will help refinance Essar
               Shipping's existing banking facilities.
            - Essar Shipping has a low debt equity ratio of 0.63:1 and
              current ratio at 4.70:1.  Essar Shipping has eight bulk
              carriers, 11 mini bulk carriers, 6 crude carriers and
              product tankers and three offshore supply vessels.
            - ESSAR Shipping Limited is setting up a port and
              project adjacent to the petroleum refinery being set by
              Oil Limited at Vadinar in Gujarat.
           - The Rs 800-crore Essar Shipping is expanding its fleet
              acquiring very large crude carriers (VLCCs).  It may opt
              acquire vessels through the bare-boat-cum-demise (BBCD)
              so as to minimise financial burden on the company.
            - ESL was also the first Indian shipping company to get
               International Safety Management (ISM) Code
 certification through
               Lloyds Register of Shipping, for its entire fleet of
               carriers and tankers as early as 1995.  The company has
 also got
               ISO 9002 certification.
 1999 - The Credit Rating Information Services India Ltd (Crisil) on
              Thursday downgraded the Rs 126-crore non-convertable
              (NCD) of Essar Shipping, a fortnight before the date of
              of the principal amount of the issue.  The NCD has been
              downgraded from `BBB+' to `C'.
            - Essar Shipping has a Rs 1,435-crore port facility under
               construction at Vadinar for its refinery at Jamnagar. 
               includes a state-of-the-art Single Buoy Mooring (SBM)
               a POL handling terminal, pipelines, and road and rail
               The port has a capacity to handle 20 million tonnes of
               and 14 million tonnes of petro products.
            - ESL has one of the largest and youngest fleet of Suezmax
              in the world with an average age of eight years, part of
              was provided as security for the loan.
            - ESL is the second-largest Indian private sector shipping
               with a fleet of 1.39 million DWT.  As the owners of
               double-hull modern Suezmax tankers, Essar is one of the
               owners and operators of crude tankers in the world.
 2000 - The Company has decided to hive off the Vadinar Port terminal
              into a separate subsidiary.
            - Essar Shipping has roped in the .3-billion Malaysia
              Shipping Corp to float a 50:50 joint venture company for
              natural gas transportation.
            - Essar Shipping Ltd. and MISC through the joint venture
 company will focus 
              of providing sea transportation for import of LNG into
           - Crisil has downgraded its rating assigned to company's
 NCDs from C to D.
           - Essar Shipping has appointed Sanjay Mehta as Managing
 Director and Rajiv Agarwal
              as chief financial officer.
           - The Compay has acquired a Capesize bulk carrier of
 1,37,000 DWT and eleven Mini
              Bulk Carriers.   The Mini Bulk Carriers were with the
 company on Bare Boat Cum Demise
 -Board agrees to issue 20crs equity shares to promoters on
 preferential basis and increase its stake from 48% to 74%.
 -Converts loans from Essar Investments into equity capital and has
 increased the holdings of Ruia's in Essar Shipping.
 -Transfers 4.22% stake in Essar Oil and 4.5% stake in Essar Steel to
 its subsidiary, Essar Sisco  Ship management.
 -Losses Rs.330 crs on account of its investments in two of its group
 companies, Essar Steel and Essar Oil.
 -Debt Recovery Tribunal issues notice for the default of Rs.17.89 cr
 on the application field by IndusInd Bank.
 -Prepays Rs.1360 million ICICI bank loan.
 -Corporate Debt Restructuring Cell approves for the Debt
 restructuring of Vedinar Oil Terminal Ltd, a 100% subsidiary of Essar
 -Members approve for the delisting of the company's equity shares
 from all stock exchange except Mumbai Stock Exchange.
 -In EGM on Sept 19, Board approves the following:
 Increase the authorised share capital from Rs.5105m to Rs. 15105m
 Issue any financial instruments to ABB Lummus, members, promoters,
 strategic investors etc.
 -Wins the 'Most Quality Conscious Indian Shipping Company' award from
 the National Maritime Day  Celebrations Committee.
 -The Indian Coast Guard Ship (CGS) Vijaya was awarded the first
 National Maritime Search and Rescue Award 2003 instituted by Essar
 Shipping Ltd
 -Essar partly insures newly acquired foreign crude carrier
 -Essar Shipping acquires VLCC for Rs 550 cr
 -Essar Shipping & Logistics orders six Mini Cape Bulk Carriers at a
 cost of USD 390 million 
 - Essar Shipping Ports & Logistics Ltd has informed that the Board of
 Directors of the Company at its meeting held on October 31, 2008,
 inter alia, has approved the appointment of Mr. S V Venkatesan & Mr.
 Deepak Kumar Varma, as an Independent Directors of the Company.
 -Company name has been changed from Essar Shipping Ltd to Essar
 Shipping Ports & Logistics Ltd.
 -Registered Office of the Company has been shifted From 2494, 17th
 Main, HAL II Stage, Bangalore 560008 To  Administrative Building,
 Essar Refinery Complex, Okha Highway (SH-25), Taluka Khambalia, Dist.
 Jamnagar-361305, Gujarat State.
 -Essar signs concession agreement with Paradip Port Trust for the
 development of Deep Draught Coal Berth.
 - Essar Shipping - Commissioning of a Product Berth by Vadinar Ports
 & Terminals Ltd.
 - Essar Ship Ports - Winning of first contract outside India by EOSL
 for deployment of Semi-Submersible Rip Essar Wildcat.
 - Essar shipping arm starts operations at Hazira.
 - Essar Group appoints V Ashok as CFO.
 - Essar Shipping Ports & Logistics Ltd has informed BSE that the
 Company on February 23, 2010 has taken delivery of a 1990 Japan
 built, 151,418 dwt Capesize Dry Bulk Carrier.
 - The Registrar of Companies, Gujarat, Dadra and Nagar Havelli, has
 sanctioned the change of name of the Company from Essar Shipping
 Ports & Logistics Limited to Essar Ports Limited.
 -Company has changed its name from Essar Shipping Ports & Logistics
 Ltd. to Essar Ports Ltd.                                             
 - The Board has recommended declaration of dividend at the rate of
 Rs. 0.50 per share.
 - Essar Ports - Essar Ports announces strategic alliance with Port of
 Antwerp International.
 - Essar Ports form strategic alliance with Port of Antwerp
 International for technical assistance.
 - Essar Ports - Essar's Paradip Coal Berth receives final
 Environmental and Forest approval.
 - Essar Ports wins the bid for development of three iron ore berths
 at Visakhapatnam Port on BOT basis for 30 years.
 - Board recommended a Dividend of  0.50 per share.
 -Board recommended a Dividend of  0.50 per share.
 -India’s biggest dry bulk vessel berths successfully at Essar Ports
Source : Dion Global Solutions Limited
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