New Delhi: Private sector port operator Essar Ports (EPL) today said it seeks shareholders' approval to raise up to $1 billion through securities from domestic and international markets to fund its expansion plans.
One of the country's largest port operators, EPL plans to increase its cargo handling capacity from 104 million tonnes per annum (MTPA), at present, to 194 MTPA, it said in a regulatory filing.
Essar Ports has four operational port terminals including the Vizag Iron Ore. Others are Hazira, Vadinar and Paradip.
Executing projects of the subsidiary firms require a considerable amount of equity, the filing added.
The company said that to meet the funding needs for expansion plans, the company "is exploring various options to raise fresh capital by issuance of either Equity Shares and/or Global Depository Receipts (GDRs), Foreign Currency Convertible Bonds (FCCBs) or any other security either by way of a public issue or a private placement."
EPL provides port and terminal services for liquid, dry bulk, break bulk, general cargo and small volumes of container cargo for specialised project equipment at its facilities.
It also has projects under implementation at Salaya in Gujarat and Paradip in Odisha, the filing said.
"Size of any of the above issue/offering of securities is proposed to be up to an aggregate amount not exceeding $1 billion or equivalent amount in Indian or any other currency (inclusive of such premium as may be determined) to be issued in one or more tranches," it added.
The company will place the special resolution before the shareholders at its annual general meeting scheduled later this month.
Last month, EPL had said its operating capacity is expected to increase to 140 MTPA by March 2016 and 194 MTPA by 2018. The total capital invested till date is around Rs 10,000 crore.
Presenting the firm's results for the June quarter, its Managing Director Rajiv Agarwal had said: "We expect the economy to grow at higher pace in the coming quarters. This along with availability of long term funds for infrastructure financing will give a boost to the sector."
Shares of the company today rose 2.61 per cent to settle at Rs 92.45 apiece on the BSE.