Essar Oil Ltd has informed that the Board of Directors of the Company at its meeting held on November 16, 2007, inter alia, has transacted the following business:
1. Expansion of the refinery capacity from 10.5 MMTPA to 34 MMTPA
The Board approved plans to increase the capacity of the refinery at Vadinar to 34 million tonnes per annum (700,000 bbl per day). The expansion is being carried out at a cost of about USD6.0 billion (Rs 24,000 crore).
2. Raising of USD 2.00 billion by issue of GDSs to Promoters / Promoter Group on a Preferential offer basis
In order to meet part of the requirement of funds for the expansion project and other corporate purposes, including refinancing / pre-paying existing debt of the Company, the Board approved issue of Global Depository Shares (GDSs) to the Promoters / Promoter Group on a Preferential offer basis, up to USD 2.00 billion at an effective price of Rs 200/- per share as against a minimum applicable price of Rs 104/- per share as per applicable Rules (being higher of average price for twenty six weeks and two weeks prior to Relevant date i.e. November 18, 2007) and decided to seek approval of shareholders for the purpose.
The Board further noted the statement made by the Promoters that they no longer intend to proceed with the delisting of equity shares from the Indian Stock Exchanges.
3. Calling an Extraordinary General Meeting
The Board decided to convene the Extraordinary General meeting on December 18, 2007.
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