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Essar Oil’s holding company floats ADR programme on US OTC market

08 Dec 2011 Evaluate

Essar Oil’s holding company-Essar Energy-has floated an American Depository Receipt (ADR) programme on the US over-the-counter (OTC) market. Each ADR represents two ordinary shares of Essar Energy. Further, Bank of New York Mellon has been appointed as the depository bank for the ADR.

An ADR is a negotiable US certificate representing ownership of shares in a non-US company. ADRs are traded and settled in US dollars. Essar Energy’s ADR programme will benefit existing shareholders by making its shares more accessible to US investors, thereby providing the company with increased visibility.

Essar Energy is a world class, low-cost, integrated energy company with an established track record. Essar Energy, through its subsidiaries, owns one of India's fastest growing private sector oil and gas companies with a diverse portfolio of exploration and production assets. The Vadinar refinery, located in Gujarat, is India's second largest private sector oil refinery with throughput capacity currently being expanded from 14.7 million metric tonnes per annum to 18mmtpa by March 2012, and with further plans to expand to 20mmtpa by September 2012.

Peers
Company Name CMP
Reliance Industries 1435.70
Indian Oil Corp. 144.70
BPCL 302.85
HPCL 387.00
MRPL 167.90
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