History of Essar Steel Ltd.
1976
- Essar Gujarat Limited was incorporated in 1976 as Essar Construction Limited. The Comp. undertook specialised marine construction activity, offshore installations, drilling for oil & gas and manufacture of hot briquetted sponge iron.
- The Comp. is a part of Essar Group of Companies & is a subsidiary of Essar Investments Ltd.
- The Comp. is divided into 4 divisions as [is] Essar Offshore - It undertakes laying of submarine oil & gas pipelines, submarine outfalls, underwater rock drilling & blasting & dredging activities. [iis] Essar Energy - This unit is the first of its kind in the private sector to own & operate super-deep land drilling and rigs. The division was awarded the World Bank aided contract for operating 4 mobile rigs for drilling oil. [iiis] Essar Construction - The division specialises in breakwater construction, ore & oil berths, Wharfwalls, overground & underground storage silos etc. and [ivs] Essar Steel - The division manufactures hot briquetted sponge iron.
1980
- The Company plant & machinery were revalued as on 31st August. As at 1st June, Company buildings & machinery were revalued & the net surplus of Rs 653,92,479 arising out of it were added to the revaluation reserve.
1986
- 150,000 No. of equity shares allotted without payment in cash on 25-10-1976. Rights shares issued at par as under: [is] 3,75,2560 shares in prop. 5:2 on 30.9.1981 & [iis] 4,72,815 shares in prop. 9:10 on 13.8.1985. Preference shares redeemable within a period not exceeding 5 years from 15.6.1988.
1987
- The name was changed to Essar Offshore and Exploration limited on 26th May 1987 & further changed to Essar Gujarat Limited w.e.f. 19th August 1987.
- A 217 km. submarine gas pipeline from the Bassein gasfield to Hazira landfall was laid. In addition, the water injection pipelines and platforms modification project at Mumbai High, at an estimated cost of Rs 40 crores was under implementation.
- The Essar Energy division operated its three super deep onshore drilling rigs for drilling of onshore oil & gas well in Gujarat and Himachal Pradesh. The self-elevating cantelevered offshore jack-up rig `Essar Explorer' was operated for drilling of offshore oil & gas wells at Mumbai High.
- The Government approvals were received for setting up of the Country first gas based hot briquetted sponge iron plant in association with Gujarat Industrial Investment Corporation Ltd. [GIICs].
- The Essar Steel unit entered into a technical collaboration agreement with M/s. Voest, Alpine, Austria & Midrex Corporation, USA for sponge iron manufacture technology.
- Ancillary plants including captive power plant were purchased and material handling systems were installed.
- The Comp. undertook to expand its sponge iron manufacturing capacity to 1,600,000 TPA from 8,80,000 TPA.
- The Comp. offered 17,00,000 - 12.5% secured redeemable convertible debentures of Rs 120 each for cash at par on private placement basis to financial institutions.
- 948,195 rights equity shares allotted at par in prop. 95:100 on 22.12.1987. Another 47,409 No. of equity shares allotted at par to employees of Company. 39,87,538 bonus equity shares issued in prop. 2:1. 88,50,000 No. of equity shares issued [Prem. Rs 30 per shares] of which [is] 20,00,000 shares to M/s. Essar Investment limited and [iis] 23,50,000 shares to M/s. Essar Shipping limited allotted privately. Out of remaining 45,00,000 shares, [is] 4,00,000 No. of equity shares to NRIs [all were taken ups]; [iis] 4,42,500 shares to employees [including Indian working directorss]/workers of Comp. & of Essar Shipping limited & Essar Investment limited [Only 25,400 shares taken ups]; [iiis] 4,50,000 shares to shareholders of Essar Shipping limited [all were taken ups] & [ivs] 4,00,000 shares to UTI [all were taken ups].
- The remaining 28,07,500 shares along with 4,17,100 shares not taken up under preferential quota were offered for public subscription during February 1988 [all were taken ups]. Additional 13,27,300 shares were allotted to retain over-subscription [1,26,200 shares to NRIs; 1,100 shares to shareholders of Essar Shipping Ltd.; 60,000 shares to UTI 11,40,000 shares to publics].
1988
- The Essar Energy division commissioned 4 mobile rigs for drilling of development oil and gas wells in Cambay basin.
- Letters of intent were received for deployment of two additional onshore drilling rigs in India. The Comp. received renewal of drilling contract for `Essar Explorer'.
- The Essar Energy division proposed to operate the drilling ship `Essar Discoverer' owned by Essar Shipping, Ltd.
- The Essar Construction division entered into a Memorandum of Understanding for installation of fibre optic cable across Thane and Dharamtar Creek.
- The Comp. received a letter of intent for setting up an export oriented unit for manufacture of 800,000 TPA of hot rolled coils & Strips in Gujarat.
- Land, Machinery, foreign collaboration & infrastructural facilities were to be obtained in Consultation with Metallurgical Engineering & Consultants of India limited [MECONs] India.
- During October, the Comp. issued 1,70,000 - 12.5% fully convertible debentures of Rs 120 each on private placement basis to financial institutions.
- Authorised capital reclassified 51,00,000 No. of equity shares allotted to financial institutions on 29.3.1989 in part conversion of 12.5% debentures.
1989
- The Essar Construction division undertook specialised civil and mechanical construction jobs, construction of ports & harbour dredging etc.
- The Comp. received Government approval for technical collaboration with MET-CHEM, Canada [a US Steel subsidiarys]. The collaborators were to be in charge of overall management of HRC project.
- During September-October, the Comp. offered 65,30,583-12.5% fully convertible debentures of Rs 200 each on Rights basis in the proportion 3 debentures : 8 equity shares held. Additional 10,28,567 debentures were allotted to retain oversubscription.
- The Comp. also offered 3,26,530-12.5% convertible debentures of Rs 200 each to the employees for subscription on a preferential basis. Balance 3,25,085 debentures were allotted to Financial institutions/Mutual funds.
- Rs 80 [Part As] of face value of each debenture was converted into 2 equity shares of Rs 10 each at a premium of Rs 30 per share on 1st June, 1990.
- Rs 120 [Part Bs] of face value of each debenture was to be converted into 3 equity shares of Rs 10 each on 1.6.1992 at a premium to be decided by C.C.I. then. The balance amount, if any, out of the face value of each debenture was to be redeemed at par at the end of 7th year from the date of allotment of debentures.
- During September-October, the Comp. issued through a prospectus 149,66,000-12.5% secured convertible debentures of Rs 180 each. Of the 149,66,000 convertible debentures, 22,60,000 debentures were reserved and allotted on a firm basis to Essar group & Associate companies. Of the balance 127,06,000 debentures, the following debentures were reserved for allotment on a preferential basis.:- [is] 7,48,300 debentures to employees of Comp. & [iis] 38,80,000 debentures to NRIs on repatriation basis [Only 36,78,825 debentures taken ups].
- The remaining 80,77,700 debentures, along with 9,38,065 debentures not taken up under preferential quota, were offered for public subscription. Additional 22,44,900 debentures were allotted to retain over subscription. [19,05,900 debentures to public & 3,39,000 debentures to Essar Group of companiess].
- Rs 80 of face value of each debenture was compulsorily converted into two equity shares of Rs 10 each at a premium of Rs 30 per share on 1.6.1990.
- Rs 100 of face value of each debenture was to be converted into 2 equity shares of Rs 10 each on 1.6.1992 at a premium to be decided by the CCI then. The premium determined be less than Rs 40, the balance amount shall be treated as the debenture & redeemed at par at the end of the 7th year from the date of allotment.
- One tradeable warrant was attached with each 12.5% convertible debenture issued during September-October rights as well as to the public & the said warrant was detachable & freely tradeable.
- The Comp. issued 100,00,000-14% secured non-convertible debentures of Rs 100 each to the public. Only 750 debentures were taken up. The remaining 99,99,250 debentures devolved on underwriters.
- The Comp. issued 32,00,000-17% non-convertible debentures with detachable warrants at a price of Rs 400 per debenture. These are redeemable at par in three annual instalments at the end of 6th, 7th, 8th years from the date of allotment.
- 509,58,160 No. of equity shares [prem. Rs 30 per shares] allotted in conversion of debentures. [7,65,000 shares during 1989-90 and 501,93,160 shares on 1.6.90s].
1990
- On 30th June, the Comp. issued 250,96,580 tradeable warrants to all the debenture holders in the proportion 1 tradeable warrant : 1 debenture held.
1991
- The Comp. proposed to increase the capacity from 8,00,000 tonnes per annum to 16,00,000 tonnes per annum at an estimated cost of Rs 3,350 crores.
1992
- The Comp. issued 3,25,73,902-15% fully convertible debentures of Rs 300 each on rights basis in the proportion of 1 debenture : 4 equity shares held [all were taken ups].
- Another 34,000-15% fully convertible debentures of Rs 300 each were offered to the employees. Only 26,929 debentures were taken up. The balance 7,071 debentures were allowed to lapse.
- Part-A of Rs 50 of each debenture was to be converted into one equity share of Rs 10 each at a premium of Rs 40 per share on allotment of debentures. Accordingly 3,26,00,831 shares were allotted.
- Part-B of Rs 55 of each debenture was to be converted into one equity share of Rs 10 each at a premium of Rs 45 per share on 1st September, 1993. Accordingly 3,26,00,831 shares were allotted.
- Part-C of Rs 195 of each debenture was to be converted into three equity shares of Rs 10 each at a premium of Rs 55 per share on 1st April, 1994. Accordingly 978,02,493 shares were allotted.
1993
- The plant incorporating modern state-of-the-art technology for manufacture of hot rolled coils was commissioned during 1994-95.
- The Comp. undertook to set up a million TPA pelletisation plant at Visakhapatnam for which, it signed a technical collaboration agreement with Lurgi GmbH of West Germany for purchase of technology and essential equipment.
- The Comp. issued 5 1/2 convertible bonds due 1998, convertible into shares. The bonds of an aggregate value of US $ 65,00,000 may be converted on or after 5th September 1993 upto & including 5th July, 1998 into equity shares with nominal value of Rs 10 each of Company at an initial conversion price subject to adjustment of Rs 62.2125 per share. These are to be redeemed on 5th August 1998. In October 1993, 378,20,976 No. of equity shares underlying the above bonds were issued.
- The Comp. issued 450,00,000 warrants to the promoters of the Company.
1994
- The Air & Oxygen injection system was installed in one of HBI modules for higher productivity.
- The Comp. undertook to set up downstream facilities adjacent to its steel plant at Hazira such as 1.2 million tonnes hot skin pass mill, 2 x 2 lakhs tonnes shearing line & 2 x 2 lakhs tonnes slitting line.
- The Comp. invested USD 9 million in P.T. Essar Dhananjaya, a joint venture in Indonesia for manufacture of Cold Rolled products.
- During June 144,59,001 No. of equity shares of Rs 10 each were issued against exchange of tradeable warrants. Another 12,77,377 No. of equity shares allotted in November. In addition 1295 shares allotted. 223,52,193 No. of equity shares were allotted at a prem. of Rs 60 per share.
- The Comp. introduced the concept of one loyalty coupon for each debenture allotted as a gesture of reward & appreciation of such to those original debenture holders who have remained with the Comp. for a minimum of three years.
- 32,00,000 No. of equity shares were allotted at a premium of Rs 50 per share.
- The Comp. issued Floating Rate Notes of US $ 200,000,000 due 1999.
- During June, 75,00,000 No. of equity shares of Rs 10 each were issued in conversion of Fully Convertible Debentures issued on private plant basis to OCBs. These were converted into 75,00,000 No. of equity shares of Rs 10 each at a prem. of Rs 20 per share on 31.03.1994.
- The Comp. issued unsecured debt bonds by way of floating rate notes for USD 250 millions. These bonds are redeemable in 1999 at par.
2000
- Essar Steel has increased its hot rolled coil capacity from the existing 2 million tonnes to 2.2 million tones.
- Essar Power is set to scout for new suitors for its 515 mw Hazira power plant. - The Comp. has launched a Web-based customer relation management [CRMs].
2001
- Essar Steel has appointed KPMG to undertake a study, which would cover the entire gamut of its operations including manufacturing, product mix, marketing, logistics procurement & finance.
- Essar has decided against making any fresh investments in the power sector & put on hold its proposed 250 mw captive power plant of Essar Steel.
2002
-Essar Steel Ltd has informed BSE that Dr G Goswami has been appointed as a Director on the Board of Comp. as the Nominee of ICICI Ltd w e f August 02, 2002. Further Mr Sanjivi Sundar, Nominee of Unit Trust of India ceased to be a Director on the Board of Comp. w e f August 09, 2002.
2003
-Essar, Jindal Vijaynagar Steel & Ispat Industries enters into an agreement to restructure Rs.20000cr liabilities.
-Essar & Stemcor team up to set up a cold rolled steel[CRs] unit.
- Shri P S Ruia & Shri V G Raghavan have been appointed as Managing Director & Director [Finances] respectively.
2004
-Essar steel buys gas from Petronet LNG
-Ties up with Indian Oil Corporation [IOCs] for Liquefied Natural Gas [LNGs] purchase
-Essar Steel Limited has signed an MoU [Memorandum of Understandings] with the Konkan Railway Corporation Limited for supply of steel plates for latter Skybus projects to be executed in India & worldwide.
-Essar Steel forges alliance with Delphi to supply new grade steel to GM
2005
-Delist shares from The Stock Exchange, Ahmedabad in terms of resolution passed by Shareholders of Comp. at the AGM held on August 07, 2004.
-Delist equity shares from The Stock Exchange Ahmedabad [ASEs] with effect from January 28, 2005.
2007
- Essar Steel has declared that it has named Mr Jatinder Mehra as the Chief Executive Officer of Essar Steel Holdings Ltd.
