Essar Ports Ltd has sought shareholders’ approval for plans to raise up to $1 billion or around Rs 6,048 crore according to the exchange rate on September 3. The company plans to raise this amount through a variety of debt or equity options, resolutions in the 2013-2014 annual report of the company said.
Essar Ports stated that the amount is being raised in order to meet the funding needs for its expansions plans, equity requirements of the company for further organic and inorganic expansions, and reducing the debt.
“Your company is exploring various options to raise fresh capital by issuance of either equity shares and/or Global Depository Receipts (GDRs), Foreign Currency Convertible Bonds (FCCBs) or any other security (Securities)…” the annual report said.
Essar Ports develops and operates ports and terminals with an existing capacity of 104 million metric tons per annum (MMTPA) across facilities across facilities located at Vadinar and Hazira in Gujarat and Paradip in Odisha. This capacity is planned to be increased to 194 MMTPA.
“Execution of various projects of the subsidiary companies require considerable amount of equity,” said the annual report.
Meanwhile, the company is also seeking shareholders’ nod for raising the borrowing limit to Rs 8,000 crore from the Rs 4,000 crore that the members of the company had earlier approved. “In view of the various expansion plans of the company, your board also proposes to enhance the borrowing limits to Rs 8,000 crore in excess of the paid up share capital and free reserves from time to time,” the annual report said.
The company’s annual general meeting is scheduled to be held on September 26.
