Essar Steel Ltd.

1976
 
 - Essar Gujarat Limited was incorporated in 1976 as Essar
 Construction
 Limited.  The Company undertook specialised marine construction
 activity, offshore installations, drilling for oil and gas and
 manufacture of hot briquetted sponge iron.
 
 - The Company is a part of Essar Group of Companies and is a
 subsidiary
 of Essar Investments Ltd.
 
 - The Company is divided into 4 divisions as (i) Essar Offshore - It
 undertakes laying of submarine oil and gas pipelines, submarine
 outfalls, underwater rock drilling and blasting and dredging
 activities.  (ii) Essar Energy - This unit is the first of its kind
 in
 the private sector to own and operate super-deep land drilling and
 rigs.  The division was awarded the World Bank aided contract for
 operating 4 mobile rigs for drilling oil.  (iii) Essar Construction
 -
 The division specialises in breakwater construction, ore and oil
 berths, Wharfwalls, overground and underground storage silos etc.
 and
 (iv) Essar Steel - The division manufactures hot briquetted sponge
 iron.
 
 1980
 
 - The Company's plant and machinery were revalued as on 31st August.
 As at 1st June, Company's buildings and machinery were revalued and
 the
 net surplus of Rs 653,92,479 arising out of it were added to the
 revaluation reserve.
 
 1986 
 
 - 150,000 No. of equity shares allotted without payment in cash on
 25-10-1976.  Rights shares issued at par as under: (i) 3,75,2560
 shares
 in prop. 5:2 on 30.9.1981 and (ii) 4,72,815 shares in prop. 9:10 on
 13.8.1985.  Preference shares redeemable within a period not
 exceeding
 5 years from 15.6.1988.
 
 1987 
 
 - The name was changed to Essar Offshore & Exploration Ltd. on 26th
 May
 1987 and further changed to Essar Gujarat Limited w.e.f.  19th
 August
 1987.
 
 - A 217 km. submarine gas pipeline from the Bassein gasfield to
 Hazira
 landfall was laid.  In addition, the water injection pipelines and
 platforms modification project at Mumbai High, at an estimated cost
 of
 Rs 40 crores was under implementation.
 
 - The Essar Energy division operated its three super deep onshore
 drilling rigs for drilling of onshore oil and gas well in Gujarat
 and
 Himachal Pradesh.  The self-elevating cantelevered offshore jack-up
 rig
 `Essar Explorer' was operated for drilling of offshore oil and gas
 wells at Mumbai High.
 
 - The Government approvals were received for setting up of the
 Country's first gas based hot briquetted sponge iron plant in
 association with Gujarat Industrial Investment Corporation Ltd.
 (GIIC).
 
 - The Essar Steel unit entered into a technical collaboration
 agreement
 with M/s. Voest, Alpine, Austria and Midrex Corporation, USA for
 sponge
 iron manufacture technology.
 
 - Ancillary plants including captive power plant were purchased and
 material handling systems were installed.
 
 - The Company undertook to expand its sponge iron manufacturing
 capacity to 1,600,000 TPA from 8,80,000 TPA.
 
 - The Company offered 17,00,000 - 12.5% secured redeemable
 convertible
 debentures of Rs 120 each for cash at par on private placement basis
 to
 financial institutions.
 
 - 948,195 rights equity shares allotted at par in prop. 95:100 on
 22.12.1987.  Another 47,409 No. of equity shares allotted at par to
 employees of the Company.  39,87,538 bonus equity shares issued in
 prop. 2:1.  88,50,000 No. of equity shares issued (Prem. Rs 30 per
 share) of which (i) 20,00,000 shares to M/s.  Essar Investment Ltd.
 and
 (ii) 23,50,000 shares to M/s. Essar Shipping Ltd. allotted
 privately.
 Out of the remaining 45,00,000 shares, (i) 4,00,000 No. of equity
 shares to NRIs (all were taken up); (ii) 4,42,500 shares to
 employees
 (including Indian working directors)/workers of the Company and of
 Essar Shipping Ltd. and Essar Investment Ltd. (Only 25,400 shares
 taken
 up); (iii) 4,50,000 shares to shareholders of Essar Shipping Ltd.
 (all
 were taken up) and (iv) 4,00,000 shares to UTI (all were taken up).
 
 - The remaining 28,07,500 shares along with 4,17,100 shares not
 taken
 up under preferential quota were offered for public subscription
 during
 February 1988 (all were taken up).  Additional 13,27,300 shares were
 allotted to retain over-subscription (1,26,200 shares to NRIs; 1,100
 shares to shareholders of Essar Shipping Ltd.; 60,000 shares to UTI
 11,40,000 shares to public).
 
 1988 
 
 - The Essar Energy division commissioned 4 mobile rigs for the
 drilling
 of development oil & gas wells in Cambay basin.
 
 - Letters of intent were received for deployment of two additional
 onshore drilling rigs in India.  The Company received renewal of
 drilling contract for `Essar Explorer'.
 
 - The Essar Energy division proposed to operate the drilling ship
 `Essar Discoverer' owned by Essar Shipping, Ltd.
 
 - The Essar Construction division entered into a Memorandum of
 Understanding for installation of fibre optic cable across Thane and
 Dharamtar Creek.
 
 - The Company received a letter of intent for setting up an export
 oriented unit for manufacture of 800,000 TPA of hot rolled coils &
 Strips in Gujarat.
 
 - Land, Machinery, foreign collaboration and infrastructural
 facilities
 were to be obtained in Consultation with Metallurgical Engineering &
 Consultants of India Ltd. (MECON) India.
 
 - During October, the Company issued 1,70,000 - 12.5% fully
 convertible
 debentures of Rs 120 each on private placement basis to financial
 institutions.
 
 - Authorised capital reclassified 51,00,000 No. of equity shares
 allotted to financial institutions on 29.3.1989 in part conversion
 of
 12.5% debentures.
 
 1989
 
 - The Essar Construction division undertook specialised civil and
 mechanical construction jobs, construction of ports and harbour
 dredging etc.
 
 - The Company received Government approval for technical
 collaboration
 with MET-CHEM, Canada (a US Steel subsidiary).  The collaborators
 were
 to be in charge of overall management of the HRC project.
 
 - During September-October, the Company offered 65,30,583-12.5%
 fully
 convertible debentures of Rs 200 each on Rights basis in the
 proportion
 3 debentures : 8 equity shares held.  Additional 10,28,567
 debentures
 were allotted to retain oversubscription.
 
 - The company also offered 3,26,530-12.5% convertible debentures of
 Rs
 200 each to the employees for subscription on a preferential basis.
 Balance 3,25,085 debentures were allotted to Financial
 institutions/Mutual funds.
 
 - Rs 80 (Part A) of the face value of each debenture was converted
 into
 2 equity shares of Rs 10 each at a premium of Rs 30 per share on 1st
 June, 1990.
 
 - Rs 120 (Part B) of the face value of each debenture was to be
 converted into 3 equity shares of Rs 10 each on 1.6.1992 at a
 premium
 to be decided by C.C.I. then.  The balance amount, if any, out of
 the
 face value of each debenture was to be redeemed at par at the end of
 7th year from the date of allotment of debentures.
 
 - During September-October, the Company issued through a prospectus
 149,66,000-12.5% secured convertible debentures of Rs 180 each.  Of
 the
 149,66,000 convertible debentures, 22,60,000 debentures were
 reserved
 and allotted on a firm basis to Essar group and Associate companies.
 Of the balance 127,06,000 debentures, the following debentures were
 reserved for allotment on a preferential basis.:- (i) 7,48,300
 debentures to employees of the Company and (ii) 38,80,000 debentures
 to
 NRIs on repatriation basis (Only 36,78,825 debentures taken up).
 
 - The remaining 80,77,700 debentures, along with 9,38,065 debentures
 not taken up under preferential quota, were offered for public
 subscription.  Additional 22,44,900 debentures were allotted to
 retain
 over subscription.  (19,05,900 debentures to public and 3,39,000
 debentures to Essar Group of companies).
 
 - Rs 80 of the face value of each debenture was compulsorily
 converted
 into two equity shares of Rs 10 each at a premium of Rs 30 per share
 on
 1.6.1990.
 
 - Rs 100 of the face value of each debenture was to be converted into
 2
 equity shares of Rs 10 each on 1.6.1992 at a premium to be decided
 by
 the CCI then.  The premium determined be less than Rs 40, the
 balance
 amount shall be treated as the debenture and redeemed at par at the
 end
 of the 7th year from the date of allotment.
 
 - One tradeable warrant was attached with each 12.5% convertible
 debenture issued during September-October rights as well as to the
 public and the said warrant was detachable and freely tradeable.
 
 - The Company issued 100,00,000-14% secured non-convertible
 debentures
 of Rs 100 each to the public.  Only 750 debentures were taken up. 
 The
 remaining 99,99,250 debentures devolved on underwriters.
 
 - The Company issued 32,00,000-17% non-convertible debentures with
 detachable warrants at a price of Rs 400 per debenture.  These are
 redeemable at par in three annual instalments at the end of 6th,
 7th,
 8th years from the date of allotment.
 
 - 509,58,160 No. of equity shares (prem. Rs 30 per share) allotted
 in
 conversion of debentures.  (7,65,000 shares during 1989-90 and
 501,93,160 shares on 1.6.90).
 
 1990 
 
 - On 30th June, the company issued 250,96,580 tradeable warrants to
 all
 the debenture holders in the proportion 1 tradeable warrant : 1
 debenture held.
 
 1991 
 
 - The Company proposed to increase the capacity from 8,00,000 tonnes
 per annum to 16,00,000 tonnes per annum at an estimated cost of Rs
 3,350 crores.
 
 1992 
 
 - The Company issued 3,25,73,902-15% fully convertible debentures of
 Rs
 300 each on rights basis in the proportion of 1 debenture : 4 equity
 shares held (all were taken up).
 
 - Another 34,000-15% fully convertible debentures of Rs 300 each
 were
 offered to the employees.  Only 26,929 debentures were taken up. 
 The
 balance 7,071 debentures were allowed to lapse.
 
 - Part-A of Rs 50 of each debenture was to be converted into one
 equity
 share of Rs 10 each at a premium of Rs 40 per share on allotment of
 debentures.  Accordingly 3,26,00,831 shares were allotted.
 
 - Part-B of Rs 55 of each debenture was to be converted into one
 equity
 share of Rs 10 each at a premium of Rs 45 per share on 1st
 September,
 1993.  Accordingly 3,26,00,831 shares were allotted.
 
 - Part-C of Rs 195 of each debenture was to be converted into three
 equity shares of Rs 10 each at a premium of Rs 55 per share on 1st
 April, 1994.  Accordingly 978,02,493 shares were allotted.
 
 1993 
 
 - The plant incorporating modern state-of-the-art technology for
 manufacture of hot rolled coils was commissioned during 1994-95.
 
 - The Company undertook to set up a million TPA pelletisation plant
 at
 Visakhapatnam for which, it signed a technical collaboration
 agreement
 with Lurgi GmbH of West Germany for purchase of technology and
 essential equipment.
 
 - The Company issued 5 1/2 convertible bonds due 1998, convertible
 into
 shares.  The bonds of an aggregate value of US $ 65,00,000 may be
 converted on or after 5th September 1993 upto and including 5th
 July,
 1998 into equity shares with nominal value of Rs 10 each of the
 Company
 at an initial conversion price subject to adjustment of Rs 62.2125
 per
 share.  These are to be redeemed on 5th August 1998.  In October
 1993,
 378,20,976 No. of equity shares underlying the above bonds were
 issued.
 
 - The Company issued 450,00,000 warrants to the promoters of the
 Company.
 
 1994 
 
 - The Air and Oxygen injection system was installed in one of the
 HBI
 modules for higher productivity.
 
 - The Company undertook to set up downstream facilities adjacent to
 its
 steel plant at Hazira such as 1.2 million tonnes hot skin pass mill,
 2
 x 2 lakhs tonnes shearing line and 2 x 2 lakhs tonnes slitting line.
 
 - The Company invested USD 9 million in P.T. Essar Dhananjaya, a
 joint
 venture in Indonesia for manufacture of Cold Rolled products.
 
 - During June 144,59,001 No. of equity shares of Rs 10 each were
 issued
 against exchange of tradeable warrants.  Another 12,77,377 No. of
 equity shares allotted in November.  In addition 1295 shares
 allotted.
 223,52,193 No. of equity shares were allotted at a prem. of Rs 60
 per
 share.
 
 - The Company introduced the concept of one loyalty coupon for each
 debenture allotted as a gesture of reward and appreciation of such
 to
 those original debenture holders who have remained with the Company
 for
 a minimum of three years.
 
 - 32,00,000 No. of equity shares were allotted at a premium of Rs 50
 per share.
 
 - The Company issued Floating Rate Notes of US $ 200,000,000 due
 1999.
 
 - During June, 75,00,000 No. of equity shares of Rs 10 each were
 issued
 in conversion of Fully Convertible Debentures issued on private
 plant
 basis to OCBs.  These were converted into 75,00,000 No. of equity
 shares of Rs 10 each at a prem. of Rs 20 per share on 31.03.1994.
 
 - The company issued unsecured debt bonds by way of floating rate
 notes
 for USD 250 millions.  These bonds are redeemable in 1999 at par.
 
 2000 
 
 - Essar Steel has increased its hot rolled coil capacity from the
 existing 2 million tonnes to 2.2 million tones.
 
 - Essar Power is set to scout for new suitors for its 515 mw Hazira
 power plant.
  
 - The Company has launched a Web-based customer relation management
 (CRM).
 
 2001
 
 - Essar Steel has appointed KPMG to undertake a study, which would
 cover the entire gamut of its operations including manufacturing,
 product mix, marketing, logistics procurement and finance.
 
 - Essar has decided against making any fresh investments in the
 power
 sector and put on hold its proposed 250 mw captive power plant of
 Essar
 Steel.
 
 2002
 
 -Essar Steel Ltd has informed BSE that Dr G Goswami has been
 appointed as a Director on the Board of the Company as the Nominee of
 ICICI Ltd w e f August 02, 2002. Further Mr Sanjivi Sundar, Nominee of
 Unit Trust of India ceased to be a Director on the Board of the
 Company w e f August 09, 2002.
 
 2003
 
 -Essar, Jindal Vijaynagar Steel and Ispat Industries enters into an
 agreement to restructure
 Rs.20000cr liabilities.
 
 -Essar and Stemcor team up to set up a cold rolled steel(CR) unit.
 
 - Shri P S Ruia and Shri V G Raghavan have been appointed as Managing
 Director and Director (Finance) respectively.
 
 
 2004
 
 -Essar steel buys gas from Petronet LNG
 
 -Ties up with Indian Oil Corporation (IOC) for Liquefied Natural Gas
 (LNG) purchase
 
 -Essar Steel Limited has signed an MoU (Memorandum of Understanding)
 with the Konkan Railway Corporation Limited for the supply of steel
 plates for the latter's Skybus projects to be executed in India and
 worldwide.
 
 -Essar Steel forges alliance with Delphi to supply new grade steel to
 GM
 
 2005
 
 -Delist shares from The Stock Exchange, Ahmedabad in terms of the
 resolution passed by the Shareholders of the Company at the AGM held
 on August 07, 2004.
 
 -Delist equity shares from The Stock Exchange Ahmedabad (ASE) with
 effect from January 28, 2005.
 
 2007
 
 - Essar Steel has declared that it has named Mr Jatinder Mehra as the
 Chief Executive Officer of Essar Steel Holdings Ltd.