DSIJ Mindshare

Over the past two years, the Essar Group has repaid over Rs. 1,37,000 crore of debt (including that of Essar Steel), a majority of which is to the Indian banks and constitutes more than 80 per cent of its group debt, said a company statement.

The circular resolution would be considered by the board of directors on or after January 2, 2019, the proposal for raising capital by this infusion and further issue of equity shares at an appropriate time and other incidental matters, it said.

Central Government, in a letter dated December 26, 2018, has informed of its decision to invest Rs. 2,159 crore in the equity capital of the bank by preferential allotment. The lender is one of the 11 public sector banks that are under the prompt corrective action (PCA) framework of the Reserve Bank of India following deterioration in its financial health.

The bank proposes to raise Rs. 400 crore to Rs. 500 crore under the employee share purchase scheme. The shares will be issued at a discount of 20 to 25 per cent of the average market price. Good performers would get a little more discount with the bank’s innovative structuring.