| The retail shareholders tendered shares less than what the promoters wanted to scale up their stake in Essar Shipping to 90 per cent, a requirement for delisting. The shareholders offer to sale of 60.0 million shares fell short of the promoters' requirement of 71.8 million shares. Promoters now hold 76 per cent stake. |
| Essar Shipping now will continue to remain listed with the stock exchanges and the shares tendered would be returned to the public shareholders. The delisting of shares was proposed in line with the Essar group's plan to consolidate and restructure businesses. |
| The floor price of the reverse book building was fixed at Rs 31.62 per share. Market sources say the maximum prices quotes for delisting proposal was at Rs 50. There are few quotes as high as Rs 75 per share, they add. |
| The cancellation of the delisting hammered down the share prices of Essar Shipping. The stock lost 5.94 per cent to Rs 40.35 on a flat Mumbai market today. |
| Industry sources said the cancellation of the delisting proposal might delay the Essar Group's plan to do a la Vedanta""consolidate business into parent companies and get them listed with foreign exchanges, like Vedanta Resources of the Anil Agarwal did some years ago. However, Essar Group sources said they had no immediate plan for overseas listing. |
| Essar Group has also initiated moves to delist Essar Oil. |
| Said Amitabh Chakraborty, President-Equities, Religare Securities: "This shows the level of investors' activism. The shareholders are very much aware about the business of the company that they have invested and they are certain about the prices that they can sell off." |
| JM Morgan Stanley was the manager to this offer on behalf of ESLL and Essar Investments. The public announcement on this regard was made on February 13 and bid had closed on March 09. |
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