Mumbai: Essar Ports, the demerged entity of Essar Shipping Port and Logistics, witnessed massive buying at its counter on the first day of trade on Tuesday as the stock skyrocketed by over 32.81% on the National Stock Exchange (NSE).
The scrip accelerated by 32.81% to close at Rs126.10 on the NSE, while on the BSE it settled at Rs122.10, up 27.72% from the previous close.
Earlier this month, Essar Shipping, Port and Logistics (ESPLL) had completed the demerger process for hiving off the company in two entities -- Essar Ports Ltd and Essar Shipping Ltd.
“Essar Ports is now the second largest private sector ports company in India with 88 MTPA of current capacity and a target to reach 158 MTPA by 2013.
We have committed Rs9,300 crore towards this business, of which Rs6,150 crore has already been invested,” Essar Ports managing director Rajiv Agarwal said.
According to the demerger plan, ESPLL will become Essar Ports Ltd, while the Shipping, Logistics and Oilfield drilling businesses of the erstwhile entity will be spun off into a separate company called Essar Shipping Ltd.
Shares of ESPLL stopped trading on the BSE from 18 May on account of demerger.
ESPLL’s share capital has been split in a ratio of 2:1. For every 3 shares held of ESPLL, shareholders have received 2 shares of Essar Ports Ltd and 1 share of Essar Shipping Ltd.
Essar Shipping, the resultant company from the demerger process, is expected to list in July 2011, a company statement said.
The share capital of Essar Ports reduced from ESPLL’s 61.5 crore shares to 41 crore shares. Essar Shipping now has a share capital of the remaining 20.5 crore shares, it added.