Great Eastern Shipping Company has announced the successful delivery of a new vessel, expanding its fleet and strengthening its position in the maritime industry. The company shared this development through an official press release.

New Vessel Details

The newly acquired vessel, named 'Jag Amol', is a Kamsarmax Dry Bulk Carrier built in 2015. With a capacity of approximately 81,843 deadweight tonnage (dwt), this addition significantly bolsters Great Eastern Shipping's dry bulk carrier fleet. The company had previously contracted to purchase this vessel.

Financial Aspects

Great Eastern Shipping funded the acquisition of 'Jag Amol' entirely through internal accruals, demonstrating the company's strong financial position and strategic approach to fleet expansion.

Current Fleet Composition

Following this acquisition, Great Eastern Shipping's owned fleet now comprises a total of 39 vessels:

The combined fleet now aggregates to 3.13 million dwt, showcasing the company's substantial presence in the shipping industry.

Future Fleet Changes

Great Eastern Shipping has also disclosed plans for further fleet adjustments:

1. Contracted to purchase:

   • 1 secondhand Kamsarmax dry bulk carrier
   • 1 secondhand Suezmax crude tanker

2. Contracted to sell:

   • 1 secondhand Suezmax crude tanker

Company Statement

Anand Punde, Company Secretary of Great Eastern Shipping, confirmed the delivery in a communication to the stock exchanges. The company views this acquisition as a strategic move to enhance its operational capabilities and market position in the dry bulk shipping sector.

The addition of 'Jag Amol' to Great Eastern Shipping's fleet marks another milestone in the company's growth trajectory, reflecting its commitment to maintaining a modern and diverse fleet to meet the evolving demands of the global shipping market.

Great Eastern Shipping Company has entered into a significant financial agreement with its wholly owned subsidiary, Greatship (India) Limited (GIL), providing a substantial term loan of Rs 425.00 crores. This strategic move aims to refinance GIL's existing External Commercial Borrowing (ECB) facility.

Loan Details

The loan agreement, executed on September 18, comes with the following key terms:

Purpose and Impact

The primary objective of this loan is to enable Greatship India to prepay its existing ECB facility, which currently has an outstanding amount of USD 70.90 million. This refinancing strategy could potentially help optimize the subsidiary's debt structure and possibly reduce its foreign currency exposure.

Transaction Transparency

Great Eastern Shipping has emphasized that the transaction is conducted on an arm's length basis, ensuring fairness and transparency. The company has also clarified that the promoters have no interest in this transaction, addressing any potential concerns about conflicts of interest.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) regulations, Great Eastern Shipping has disclosed the details of this agreement to the stock exchanges. The disclosure includes information required under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Company Relationship

Greatship (India) Limited is a wholly owned subsidiary of Great Eastern Shipping Company. This parent-subsidiary relationship underscores the strategic nature of the loan agreement within the corporate group structure.

This financial maneuver by Great Eastern Shipping demonstrates the company's commitment to supporting its subsidiary's financial health and potentially improving the overall financial efficiency of the group. As the maritime industry continues to navigate global economic challenges, such strategic financial decisions could play a crucial role in maintaining competitiveness and financial stability.