Essar Shipping Ports & Logistics Ltd., India’s second-largest marine transport company by market value, plans to raise $280 million selling convertible bonds.
The Mumbai-based company will sell the foreign-currency convertible bonds for two days to Aug. 5, Essar Shipping said in a statement to the Bombay Stock Exchange today without elaborating. Chief Financial Officer V. Ashok wasn’t immediately available for comment.
Essar Shipping plans to boost investment at its port unit by 77 percent to $1.78 billion by 2013, the company said in a presentation to investors in June. Chinese demand for commodities and energy is helping revive demand for transporting goods. Rising shipping tariff is encouraging companies including Nippon Yusen K.K. and Shipping Corp of India. to add vessels.
“Tanker and bulk rates have recovered slightly from the lows they went down to in June,” said Param Desai, an analyst at Angel Broking in Mumbai. “With supply now in check, we feel that the rates have reached their trough and won’t go down any further.”
Essar Shipping, which has risen 18.6 percent this year, rose 5.1 percent to 90.5 rupees at 2:46 p.m. in Mumbai.
The company operates a fleet of 25 ships, including very large crude carriers, dry bulk carriers. It has another 12 ships on order. It also operates 14 off-shore oil rigs through Essar Oilfield Services Ltd.
“We anticipate a growing demand from the Chinese Steel industry, boosting iron ore movements,” Essar said in the presentation to investors in June. “Coking and thermal coal demand is growing with recovery in steel and power industries.”
Shipping Corp of India Ltd., a state-owned shipping line, on July 30 said it plans to add 14 ships to its fleet of 75 vessels in the current fiscal year.
The Mumbai-based company will sell the foreign-currency convertible bonds for two days to Aug. 5, Essar Shipping said in a statement to the Bombay Stock Exchange today without elaborating. Chief Financial Officer V. Ashok wasn’t immediately available for comment.
Essar Shipping plans to boost investment at its port unit by 77 percent to $1.78 billion by 2013, the company said in a presentation to investors in June. Chinese demand for commodities and energy is helping revive demand for transporting goods. Rising shipping tariff is encouraging companies including Nippon Yusen K.K. and Shipping Corp of India. to add vessels.
“Tanker and bulk rates have recovered slightly from the lows they went down to in June,” said Param Desai, an analyst at Angel Broking in Mumbai. “With supply now in check, we feel that the rates have reached their trough and won’t go down any further.”
Essar Shipping, which has risen 18.6 percent this year, rose 5.1 percent to 90.5 rupees at 2:46 p.m. in Mumbai.
The company operates a fleet of 25 ships, including very large crude carriers, dry bulk carriers. It has another 12 ships on order. It also operates 14 off-shore oil rigs through Essar Oilfield Services Ltd.
“We anticipate a growing demand from the Chinese Steel industry, boosting iron ore movements,” Essar said in the presentation to investors in June. “Coking and thermal coal demand is growing with recovery in steel and power industries.”
Shipping Corp of India Ltd., a state-owned shipping line, on July 30 said it plans to add 14 ships to its fleet of 75 vessels in the current fiscal year.