Essar Steel is India’s leading fully integrated flat steel manufacturer. The company has annual capacity of 10 million tonnes and has strong presence in intensive steel consuming markets of Asia and North America. It has operations in two countries. A 10 MTPA integrated facilities in India and a 0.4 MTPA downstream complex in Indonesia.
Unlisted Shares Details:
Sector: Steel
ISIN: INE127A01021
Face Value: Rs 10
Status: Shares Cancelled. Now not tradeable
Recent Update –
Essar Steel shares go missing from demat account. Many investors are asking about Essar Steel shares and want to sell them. Some are saying they had purchased Essar Steel shares but shares are not getting reflected in the demat accounts.
Essar Steel shares held by investors have been debited from their demat accounts and those held in physical form as share certificates will also not be valid, following the resolution plan which seeks to extinguish the capital.
In an e-mail statement to investors, Essar Steel India Company Secretary Pankaj S. Chourasia said that in connection with the corporate insolvency resolution process of Essar Steel India, the resolution plan submitted by ArcelorMittal India has been approved by the Supreme Court through its judgment of November 15, 2019, after considering the judgment of the National Company Law Tribunal (NCLT) Ahmedabad and National Company Law Appellate Tribunal (NCLAT).
Consequently, the entire existing issued, subscribed and paid-up share capital of the company stood cancelled and extinguished with effect from December 16, 2019, the company secretary said.
The promoters, the Ruia family, held a 97.54 per cent stake in Essar Steel while the public held 2.54 per cent. The percentage of shareholders holding less than Rs 1 lakh worth of shares was 1.81 per cent, indicating that a significant number of small shareholders lost out completely under ArcelorMittal’s resolution plan.
Essar Steel Share Price
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It’s manufacturing facility comprises ore beneficiation, pellet making, iron making, steel making, and downstream facilities. In addition, it also has cold rolling mill, galvanising, pre-coated facility, steel processing facility, extra wide plate mill and a pipe mill. The steel plant located at Hazira has modern infrastructure like a power plant and a port that can handle 30 million tonne cargo annually.
Financial Performance
Essar Steel has posted healthy EBIDTA of around Rs 2,000 crore during the insolvency period. Hence, the amount could be utilised by financial creditors against their outstanding dues, one of the operational creditors has claimed.
Essar Steel acquisition by ArcelorMittal
ArcelorMittal will pay nearly Rs 50,000 crore for the buyout. An upfront payment of Rs 42,000 crore to settle debt a further Rs 8,000 crore will be paid for capital injection into the company. Above all, ArcelorMittal is the world’s leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 countries.
Synergies
In conclusion, the acquisition will give ArcelorMittal control of India’s largest single-location flat steel mill in Hazira, Gujarat. The asset also has two iron ore pelletisation plants, at Visakhapatnam and Paradip, and a downstream steel hub in Pune, close to a automobile manufacturing hub.