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Essar Oil trades in red despite working its way out of CDR loan facility

10 Aug 2012 Evaluate

Essar Oil is currently trading at Rs. 53.80, down by 0.05 points or 0.09% from its previous closing of Rs 53.85 on the BSE.

The scrip opened at Rs 54.00 and has touched a high and low of Rs 54.45 and Rs 53.45 respectively. So far 157225 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs. 102.50 on 12-Aug-2011 and a 52 week low of Rs 44.80 on 18-Jan-2012.

Last one week high and low of the scrip stood at Rs 57.15 and Rs. 53.20 respectively. The current market cap of the company is Rs 7333.63 crore.

The promoters holding in the company stood at 15.96% while Institutions and Non-Institutions held 3.64% and 6.40% respectively.

Private sector refiner, Essar Oil, has managed to tie up Rs 9400 crore debt facility to replace its Corporate Debt Restructuring (CDR) loan facility, which was set up in December 2004, to help construct the company’s refinery at Vadinar in Gujarat. The company also has received approval for the exit of its CRD facility, a move that would aid the company in enjoying greater operational and financial flexibility. Further, this debt facility has been organized from the same group of lenders who had set up the CDR facility and would be on mutually acceptable commercial terms.

The Vadinar refinery which commenced commercial production in May 2008 with a capacity of 10.5 mtpa (million tonnes per annum) has been upgraded to a capacity of 20 mtpa in recent months.  Recently, the Gujarat Government also lifted its freeze on Essar Oil accounts, after the company complying with the Supreme Court direction’s deposited sum of Rs 1,000 crore with the state government for sales tax liabilities totaling Rs 6,169 crore.

Essar Oil is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to refining and oil retail.

Peers
Company Name CMP
Reliance Industries 1366.00
Indian Oil Corp. 146.90
BPCL 316.20
HPCL 380.00
MRPL 180.20
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