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Nayara Energy Ltd (formerly Essar Oil) has raised Rs 2,400 crore through its maiden placement of NCDs in the domestic market. The issue got over-subscribed by 60 per cent over the base size of Rs. 1,500 crore.
Proceeds of the issue will be utilised mainly towards working capital requirements and for refinancing the company’s existing debt. The “AA” rated (rating issued by CARE Ratings) secured NCDs was offered with a three-year bullet maturity.
Last year in August, Russian Oil major Rosneft had acquired 49.13 per cent equity stake and Kesani Enterprises (consortium of Trafigura group and UCP PE Investments) acquired 49.13 per cent equity stake in Nayara Energy Ltd, along with captive port and power assets from Essar Group at an enterprise value of $ 12.9 billion.
“It is a landmark event in the history of the company being the first foray in the Indian debt capital market. The oversubscription of issue shows the confidence of investors in renewed identity of the company,” said B Anand, Chief Executive Officer of the company.
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