Nayara Energy Unlisted Shares

About Company

Nayara Energy (earlier known as Essar Oil) is one of India’s largest and most strategically important integrated downstream oil & gas companies. The organisation operates across the entire hydrocarbon value chain, including refining, production, supply & distribution, trading, and retail marketing.

The company owns and operates:

• India’s second-largest refinery is located at Vadinar, Gujarat
• A 1,000 MW captive power plant
• Vadinar Port & Oil Terminal
• A rapidly expanding network of private petrol pumps across India

Russia’s state-owned oil & gas major Rosneft acquired a 49.13% stake in Essar Oil in October 2016 for $12.9 billion, along with Trafigura and UCP Investment Group holding another 49.13% jointly.

 In May 2018, the new promoters rebranded the company as Nayara Energy — derived from “Naya + Era”, symbolising a new era of energy transformation. Today, Nayara is one of the most significant private players in India’s retail fuel market and a key strategic contributor to the national energy supply chain.

History & Key Milestones

• 2015–16: Essar Oil delisted from the stock exchange; final discovered exit price ₹262.80 per share through reverse book building.
• 2016: Rosneft + Trafigura + UCP consortium acquired 98% stake for $12.9 billion.
• 2018: Raised ₹2,400 crore (US $355 million) through non-convertible debentures. Local credit rating upgraded by three notches to “AA”.
• 2019: Major refinancing completed to optimise debt structure and strengthen capital efficiency.
• 2020: Retail segment delivered 18% YoY volume growth vs industry growth of just 1%. Converted its full retail and supply chain network to BS-VI fuel, ahead of the regulatory mandate.

Business Performance Snapshot (Across Key Vertical Operations)

Retail Business

• 18% YoY growth in FY20, massively outperforming industry 1% growth
• 574 new fuel stations added in FY20, taking total to 5,702 petrol pumps across India
• Focus on expanding tier-2 and tier-3 penetration to capture demand in non-metro zones

Supply & Distribution

• Strengthened domestic infrastructure with new coastal terminals at Mangalore & Ennore
• Started supplies from Bina and Kanpur depots to boost reliability in MP & UP
• Wardha rail-fed depot commissioned in 2019, servicing Vidarbha region
• Pali automated depot expected completion 2021
• Full BS-VI conversion completed Jan 2020 — ahead of national deadline

Institutional Business

• Petcoke sales strengthened via priority market optimisation
• Entered new markets — Odisha & Nepal
• Achieved highest ever Sulphur sales
• Re-entered Bitumen segment after a year of absence

Strengths & Growth Drivers

• One of India’s largest private retail fuel networks
• Strategic refining asset (Vadinar) with coastal export advantage
• Backed by global energy & commodity leaders - Rosneft, Trafigura & UCP
• Robust distribution & supply chain backbone
• Strong cash flow profile & narrowing leverage position
• Favourable demand outlook -  India projected to remain one of the world’s fastest-growing fuel markets

Risks & Challenges

• High dependence on global crude price volatility
• GRM compression risk due to fluctuating refining spreads
• Regulatory uncertainties in fuel pricing and retail licensing
• Aggressive competition from public sector OMCs (IOCL, BPCL, HPCL)
• Capex-heavy model demanding high working capital & constant infra investment

Quick Summary

Nayara Energy is an energy powerhouse with one of India’s most valuable refining and retail distribution infrastructures. Backed by world-class promoters and a strong balance sheet turnaround, the company is aggressively scaling towards 6,000+ fuel retail outlets, strengthening supply chain reliability, and expanding institutional sales.

While refining margin fluctuations and regulatory uncertainty remain structural challenges, Nayara’s deleveraging success, high cash flow visibility and focus on retail expansion place it firmly among India’s most strategically important downstream players.

For private-market and unlisted-equity investors, Nayara represents a stable, asset-backed business with strong scalability potential, especially once GRMs recover and retail penetration reaches full scale.