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August 28, 2008


Ennore Port to raise INR 800 crore through IPO

BL reported that Ennore Port Limited is mulling an initial public offering to raise about INR 800 crore for improving its facilities. The proposal is recently discussed by Ennore port authorities with the union shipping ministry officials. If the IPO goes through, it will be the first major government owned port where general public could have a stake.

A shipping ministry source said that "Since Ennore port needs to raise INR 800 crore or so, it is considering the appointment of a consultant to study the possibility of raising funds through a public issue. However, it is yet to take a board approval."

Ennore Port had cash reserves of INR 14.84 crore as on March 31st 2007, with an authorized share capital of INR 500 crore and issued capital of INR 300. It had a debt of INR 418.7 crore. According to a business plan developed by HPC Hamburg Consulting and Consulting Engineering Services for the port, it should have 43 million tonnes throughput by 2013 based on a conservative growth estimates.

To provide world class services, Ennore Port has to undertake a capital expenditure of INR 3,324.3 crore, of which INR 748 crore has to be company’s own investment while the rest could be raised through public private partnerships.

In 2007-08, Ennore Port handled 11.6 million tonnes of cargo, 9.05 million tonnes thermal coal and 2.19 million tonnes of iron ore. Ennore port is now constructing a new facility costing INR 480 crore that can handle 12 million tonnes of iron ore per annum. It has recently invited qualifying bids for setting up a container terminal. Besides, it is also in the process of setting up a common user coal terminal with 8 million tonnes a year capacity at a cost of INR 400 crore and a liquid cargo terminal with 3 million tonnes a year capacity costing INR 200 crore.

The new iron ore and coal terminals are expected to be ready by August 2010, and the containers berth by April 2011. It also plans to set up an exclusive cargo berth for export of cars at a cost of INR 140 crore. It is understood to be in talks with Nissan and Renault for export of 200,000 cars a year to the European market by 2010.