Essar Steel Limited Unlisted Shares

(i) Essar Steel is an integrated steel producer with an annual capacity of 10 million tonnes with a strong presence in intensive steel consuming markets of Asia and North America. It has operations in India and Indonesia.

(ii) Essar Steel’s manufacturing facility comprises Ore beneficiation, Pellet Making, Ironmaking, Steelmaking, and downstream facilities including cold rolling mill, galvanizing, 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 tonnes cargo annually.

(iii) With a focus on value-added products, it produces over 300 grades of steel conforming to quality standards of international certification agencies like API, ABS, NACE, Lloyd’s Register to name a few.

(iv) Essar Steel has set up a 1.5 MTPA plate mill and a 0.6 MTPA pipe mill at Hazira to add further value to its product portfolio. With one of India’s largest steel processing and distribution network with a capacity of 4 MTPA located at several industrial hubs, Essar Steel manufactures customized products catering to a variety of industry segments.

Essar Steel Limited Unlisted Shares Details:

Total Available Shares:	5000
Face Value:	₹ 10 Per Equity Share
ISIN:	INE127A01021
Lot Size:	1000 Shares
Current Unlisted Share Price:	₹ 5-5.25 Per Equity Share
Retail Discount:	Bulk Deal (1%)

Shareholding Pattern:

Shareholding of Promoters as on 31.03.2018

Sr.No	Promoters	No. of Shares	% of Shareholding
1	Essar Steel Asia Holdings Ltd	2,240,939,040	72.08
2	Essar Steel Limited – Mauritius	26,26,838	0.080%
3	Aegis Tech Limited	5872,43,674	18.900%
4	In-Trust Beneficiary – ESTL	1915,17,500	6.160%

Financials of Essar Steel Limited Unlisted Shares:

Particulars(in Crs)	FY 17-18	FY 16-17	FY 15-16
Gross Revenue	27,419.49	23,332.32	16,177.88
Expenses	24,482.24	20,341.00	15,671.96
Finance Cost	7,946.82	5,957.60	5,134.30
Depreciation	1,927.42	2,063.43	2,060.82
PAT	-14,240.00	-5,643.29	-4,452.35

UZ Review 1. The Company has shown robust growth in terms of Revenue in the last 3 years. 2. The Debt on Books as on 31.03.2018 is 16,321 Cr because of which the Finance cost is coming at 7,946.82 Cr. The Company is in loss mainly due to very high-interest cost on debt. 3. As on 31.03.2018, the company has a total Asset of 54,360 Cr. 4 As per Annual Report 2017-18, the Company has defaulted in repayment of borrowings to the banks and financial institution and in repayment of dues ‘to debenture holder during the year. So Corporate insolvency resolution process (“CIRP”) under the IBC Code, 2016 (“IBC”) was initiated against the company vide an order of Ahmedabad bench of National Company Law Tribunal (“NCLT”) dated 2nd August 2017. Details of the outstanding amounts as on 2nd August 2017 of some prominent bank is as below.

Sr. No.	Name of the Bank	Rupees in Crore
1	Canara Bank	3,798.06
2	ICICI Bank	2,294.11
3	Punjab National Bank	2,936.24
4	State Bank of India	13,220.91
5	Standard Chartered Bank	3,557.43

1.Annual Report 2018

2.Annual Report 2017

Company Address:

27th KM, Surat Hazira Road, Hazira, Dist. Surat, Pin - 394270, Gujarat. Tel. : 0261-668 2400 Fax : 0261-668 5731 email : estlinvestors@essar.com CIN : U27100GJ1976FLC013787

Discussion on Essar Steel Limited Unlisted Shares:

The resolution of the Essar Steel case in NCLT is facing litigation due to a fight between operational creditors and financial creditors.

Laxmi Mittal had already given 44000 cr to NCLT for buying stakes in the company. However, financial creditors ( like a bank) want more pie of share, and on the other hand, operational creditors want more pie of share.

Now the case is pending in the Supreme court, as to who will get how much share?

This unnecessary litigation has dragged the case too far. The sole purpose of NCLT is defeating here. In spite of finding the right creditor, the case is still lingering in court.

The Govt. should issue some guidelines to share the percentage between Operational creditors and Financial Creditors, once the case is settled in NCLT, else such litigation will crop in the future as well.

Did minority shareholders get anything after NCLT resolution?

1. The NCLT proceedings are inclined more towards creditors rather than minority shareholders.

2. Mostly the acquirer tries to delist the company. As per SEBI regulations, the acquirer can delist company without going for a reverse book building process and approval of minority shareholders. Under the reverse book-building process, a fair value of the share is determined and the acquirer pays the same. However, in normal listing they give peanuts.

For instance, consider the delisting case of Electrosteel Steels which was acquired by Vedanta Group. The company offered a delisting price of only 19 paise per share while the Electrosteel shares were trading at around Rs 26 in the stock exchange platform at the time of announcement. Similarly, in the case of Assam Company, the acquirer BRS Ventures has offered to pay only 10 paise per share to public shareholders even as the stock was trading at around Rs 5 at the time of announcement.

So we can conclude that hardly we see minority shareholders getting anything in the deal.

https://unlistedzone.com/nclat-refuses-stay-on-nclt-nod-to-arcelormittal-plan-economics-times-16-03-2019/

i buy would like to buy the 5000 shares of Essar Steel. Would you help me?

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What is the Current Price of Essar Steel Unlisted Share, if I want to Buy Essar Steel what is the Procedure

https://www.essar.com/essar-global-repays-all-debt-to-indian-and-foreign-lenders/

State Bank of India has put on sale its total loans to Essar Steel Ltd. worth Rs 15,431 crore, as per information on its auction website. The sale is open for asset reconstruction companies, non-banking finance companies, banks and financial institutions.

The minimum reserve price for the loans has been set at Rs 9,587 crore and the bank has disclosed that as per the ArcelorMittal resolution plan, approved by Essar Steel’s committee of creditors, the minimum recovery amount on these loans is Rs 11,313 crore.

The reserve price has been computed using an 18 percent discount on the minimum recovery amount from the ArcelorMittal plan and pricing in a one-year period for the deal to close, according to the notification put up by India’s largest lender. The bank has also put in a clawback option, where if the resolution happens in less than a year, the discount could be reduced and the entity buying these loans would have to pay more to SBI.

SBI has not discussed this move with any of the other banks in the case, a banker to Essar Steel told BloombergQuint. It is possible that SBI wanted to close this case at the earliest and report higher recoveries in the January-March quarter, this lender said on conditions of anonymity. The Essar Steel insolvency case has seen considerable delays, even after the committee of creditors have approved the ArcelorMittal bid.

The list of financial creditors put up by Essar Steel’s resolution professional in January 2018 shows that SBI is the largest lender to the company, with claims worth Rs 13,310 crore to the account. Edelweiss Asset Reconstruction Company Ltd. is the second largest lender with claims worth Rs 5,352 crore admitted.

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I want 1000 pcs

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