Essar Oil hits 52-week high on heavy volumes

The stock soared 11% to Rs 249 on the NSE ahead of closure of delisting offer through reverse book-building process today.

Essar Oil has soared 11% to Rs 249, also its 52-week high on the National Stock Exchange (NSE) on back of heavy volumes, ahead of closure of delisting offer through reverse book-building process. The offer commenced on December 15, is schedule to closes today on December 21.

The trading volumes on the counter jumped more than four-fold with a combined 6.53 million shares representing around 5% of total free-float equity capital of Essar Oil changed hands on the NSE and BSE.

Essar Oil had earlier this month issued a public notice to delist the company from local bourses by buying out the non-promoter shareholding of 28.54% or 142.49 million equity shares at Rs 146.05 per share.

“The proposed delisting of equity shares from the stock exchanges is to achieve complete operational or financial flexibility in furtherance of the company's business or financial needs and enable promoter shareholders and the promoter to pursue strategic opportunities in respect of its investments," according to a company delisting notice.

The promoter group believes that the delisting of the company’s equity shares will be in the interest of the public shareholders as it will provide them with an exit opportunity from the company, it added.

At 03:17 p.m. the stock was up 8.4% at Rs 244 on the NSE.