NAYARA ENERGY LIMITED (OLD NAME: ESSAR OIL LTD)

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₹ 174

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₹ 210

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Company Overview

Nayara Energy Ltd (formerly Essar Oil) is an integrated downstream petrochemical company, based in Mumbai. The Company and its subsidiaries are primarily engaged in the business of refining crude oil, marketing of petroleum products in domestic and overseas markets, providing port and terminal services for the Company’s refinery. 

The company owns and operates India’s 2ND largest crude oil refinery with 20 million metric tones (MMT) capacity in Vadinar, Gujrat. The refinery’s strategic location on the west coast of India provides an edge in terms of access to the high consumption domestic market of India and export markets of Middle East and Africa.    

In 2016, the ownership of the company changed hands from Essar Group to Rosneft, Trafigura and UCP Investment Group. Subsequent to the change in ownership, the script was voluntarily delisted w.e.f. 17-February-2016 from the stock exchanges at the price of ₹ 262.80.   

Nayara is setting up a greenfield 450,000 tones polypropylene plant near to its Vadinar refinery, Gujarat as part of its vertical integration strategy.

The company has not distributed any dividend in the recent past and there were 149,05,61,155 outstanding equity shares of face value of Rs 10 each as on 31-March-2022. Kesani Enterprises and Rosneft Singapore were two biggest shareholders owning 49.13% shareholding each. At Rs 165 share price in the unlisted market, the total market cap of the company was approx Rs 24,500 crores and P/E of 26x (165/6.18).

Business Model

Nayara owns and operates one of the most modern and complex oil refineries with an annual capacity of 20 million metric tones (MMT) or 405,000 barrels per day (bpd).  The Vadinar refinery is capable of processing high quality Euro IV and Euro VI grade oil products, besides high quality Bharat Stage VI compliant fuels.  During FY 2022, the company earned 31% of its total revenues from exports.

The company also has a fastest retail network of 6500+ petrol pumps in India under the brand name of Nayara. The company plans to grow its retail outlets to 7600+ during the next three years. 

Registered Address

The registered office of the company is located at Khambhalia, District Devbhumi Dwarka, Gujarat.

Listing Status: Nayara Energy Ltd is an Unlisted Company. It got delisted in 2015 at Rs. 262.8 per share and in 2017 Rosneft PJSC, Trafigura Pte Ltd and UCP Investment Group bought 98.26% stake at Rs. 370.1 per share. (https://www.livemint.com/Money/WH5lh8Rwsiz11ZjfKeyw6I/Essar-Oil-minority-shareholders-to-earn-more-on-shares-tende.html)

Symbol:Nayara Energy Ltd.
Face Value (₹):10
ISIN:INE011A01019
Demat Status:NSDL & CDSL
Lot Size:100

It has 2 Subsidiaries:

  1. Vadinar Oil Terminal Ltd – Nayara Energy holds 97.63% stake. Total Income Rs.2159.2 Crs and PAT Rs. 995 Crs in FY2020.
  2. Coviva Energy Terminals Limited & Nayara Energy Global Limited – 100% Holding of Nayara Energy are yet to commence its business.

Board of Directors:

NameDesignationProfile
CHARLES ANTHONY FOUNTAINExecutive Chairmanlinkedin
JONATHAN KOLLEKNon-Executive DirectorNA Final 1
CHIN HWEE TANNon-Executive Directorlinkedin
KRZYSZTOF ZIELICKINon-Executive Directorlinkedin
VICTORIA CUNNINGHAMNon-Executive DirectorNA Final 1
AVRIL CONROYNon-Executive Directorlinkedin
ALEXANDER ROMANOVNon-Executive DirectorNA Final 1
DEEPAK KAPOORIndependent Directorlinkedin
NAINA LAL KIDWAIIndependent Directorlinkedin
ALEXEY LIZUNOVNon-Executive Directorlinkedin
PRASAD K PANICKERDirector & Head of Refinerylinkedin

Key Highlights

  • Nayara operates one of the most high-tech petrol-chemical refineries of India with 20 MMT capacity and having almost 90% capacity utilisation rate, the highest among all Indian refiners.
  • Nayara is setting up a Greenfield 450,000 tonnes polypropylene plant near its Vadinar refinery, Gujarat as part of its vertical integration strategy.
  • Nayara Energy is already India’s largest private fuel retailer with 6000+ fuel outlets operating under the brand name ‘Nyara’. The company tripled its count of fuel retail pumps during the last 3 years (6000+ as on 31-March-2021) while aiming to grow its network to 7600 outlets in the next three years.
  • Nayara Energy is owned by one of the most seasoned investors of the petrochemical industry- Rosneft, Trafigura and UCP Investment Group.

Financial Highlights

Particulars2021-222020-212019-202018-192017-18
Total Income (₹ Crores) 120004.8088565.60100549.90100313.2086692.70
PAT (₹ Crores) 921.00458.202500.00688.50577.00
Diluted EPS 6.183.0716.614.554.48
Book Value per Share (₹) 145.19138.59128.91128.92123.81
Equity (₹ Crores) 21641.7020657.7019214.9019216.5018454.70

Financial Charts

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Historical Chart

Shareholding Pattern

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Media Updates

“Bonus Share Issue Propose in June 2021.”

The Board of Directors, at its meeting held on 14th June, 2021 has recommended for issuance of
bonus shares in the proportion of 1:2 [i.e.1 (One) new fully paid up equity share for every 2 (Two)
existing equity shares held].

Nayara Energy ties up Rs 4,000 crore in funding for petrochemical project

Rosneft-backed Nayara Energy has tied up funding of Rs 4,000 crore from a State Bank of India-led lenders’ consortium for its first petrochemicals project.

The company plans to use the funds to set up a 450,000 tones per annum polypropylene plant at its Vadinar refinery in Gujarat, Nayara said in a statement. The company is already in possession of the required land.

 

Read more at:

https://economictimes.indiatimes.com/industry/energy/oil-gas/nayara-energy-ties-up-rs-4000-crore-in-funding-for-petrochemical-project/articleshow/85652339.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
NAYARA ENERGY LTD24594.260.77%5.91%4.26%0.3626.701.14145.19
RELIANCE INDUSTRIES LTD16342649.36%8.02%7.78%0.3428.642.291314.09
INDIAN OIL CORPORATION LTD999784.15%17.61%18.79%0.992.900.82147.18

Frequently Asked Questions

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid. 

The procedure to buy the Nayara Energy unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. 

When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved. 

The Nayara Energy shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Nayara Energy Ltd unlisted shares, please visit the stock page on our website: www.delistedstocks.in  

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

 

Before IPO, there is no restriction on sale and transfer of your Nayara Energy unlisted shares. 

But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. 

If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange

Yes, NRI’s can also buy and sell Nayara Energy unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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