US fund buys more Essar

Royal Bank of Scotland (RBS) has sold out of India’s Essar Shipping as a US fund builds its stake.

The UK lender offloaded 3.8m shares – a 1.85% slice - to Leman Diversified at INR 25 each, for a total gain of INR 95m ($1.57m).

Leman already had a 1.28% holding in the tanker and bulker owner, and the new deal makes it the second biggest institutional investor after the Max India fund.

Essar’s stock rose as much as 4.9% on Wednesday.

The company reported a consolidated net loss of INR 2.4bn for the year ending 31 March.