The shares of the Supply chain management company locked around 5 percent upper circuit in early trade on Thursday after the company board approved the disinvestment and sale of shares in three units.
Essar Shipping Ltd shares on the National Stock Exchange touched a 5 percent upper circuit at Rs. 12.20 a share, and the company’s market capitalization is Rs 252 crores.
As per the company’s exchange filing, The Board of Directors of the Company approved the sale of shares in three fully owned subsidiary companies, including Energy II Limited in Bermuda, Essar Shipping DMCC in Dubai, and OGD Services Holdings Limited in Mauritius, as well as the disinvestment in overseas direct investments (ODI). The wholly-owned subsidiary will no longer be a subsidiary of the Company after this transaction is complete.
The company reported a 33 percent reduction in revenue for the June quarter, to Rs 10 crore, from Rs 15 crore in the corresponding previous year’s quarter (Q1FY23). During the same time period, the company’s net profit increased to Rs 26 crore from a loss of Rs 15 crore.
In the previous six months, the stock has climbed by 31 percent, and in the last year, it has increased by 74 percent.
According to the recent shareholding pattern, the promoters own 74.37 percent of the company, while retail investors hold 25.6 percent.
Essar Shipping Ltd. is a supplier of integrated supply chain solutions with investments in maritime transportation and contract drilling. The company has also made investments in a variety of economic sectors, including fleet operations and chartering, oilfield services, and logistics services.
Written by Omkar Chitnis
