Deep Sea to Offshore

Deep Sea to Offshore Hansavivek GREAT EASTERN SHIPPING (GES) completed the first phase of its diversification into the offshore arena. It has already obtained approval of shareholders for investment of Rs 90 lakh in 'Great Atwood' which will own and operate offshore rigs. GES will provide marine services to the proposed company, for which it will be remunerated. The main advantage, however, is that the company will learn the business in this new area. Another area which the management has identified for diversification is housing development. The Chairman, Vasant Sheth, assures shareholders that the management will be able to run a "clean and professional outfit in this area": He is of the view that the company should beef up its networth to over Rs 100 crore from Rs 50 crore at present to ensure stability and growth. This will mean approaching certain international investors, depending on the diversification that the company undertakes, and the balance to be raised from internal resources and from shareholders. Of the Rs 50 crore networth the company has, only Rs one crore has been subscribed in cash and the balance is through retained earnings. Earlier this year, the company approached shareholders to subscribe to Rs 12.78 crore worth of convertible bonds and the response was overwhelming.