Essar Oil gains on reports of BSE delisting nod

Essar Oil rose 2.59% to Rs 196 at 10:21 IST on BSE on reports the Bombay Stock Exchange has approved the planned delisting of shares in the company.

Meanwhile, the BSE Sensex was up 22.54 points, or 0.08%, to 28,468.66.

On BSE, so far 3.79 lakh shares were traded in the counter, compared with an average volume of 6.11 lakh shares in the past one quarter.

The stock hit a high of Rs 199.30 and a low of Rs 192.55 so far during the day. The stock hit a 52-week high of Rs 200.30 on 13 July 2015. The stock hit a 52-week low of Rs 91.85 on 27 November 2014.

The stock had outperformed the market over the past one month till 16 July 2015, rising 33.18% compared with 6.59% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 75.36% as against Sensex's 0.77% fall.

The large-cap company has an equity capital of Rs 1511.44 crore. Face value per share is Rs 10.

The delisting plan had already been approved by National Stock Exchange (NSE). Essar Oil, a unit of India's diversified Essar Group, was given the Bombay Stock Exchange (BSE) green light on Wednesday, media reports added.

Earlier this month, promoters of the Gujarat-based integrated oil and gas company agreed to sell 49% stake in Essar Oil to Russian energy major OJSC Rosneft Oil Company, which will supply 10 million tonnes (mt) a year of crude to Essar Oil's 20-mt Vadinar refinery in Gujarat for 10 years.

Media reports suggested that delisting the company would allow the company's promoters greater flexibility and less regulatory scrutiny while selling a stake in the refiner.

Essar Oil's net profit fell 45.8% to Rs 546 crore on 38.3% decline in net sales to Rs 15563 crore in Q4 March 2015 over Q4 March 2014.

Essar Oil is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to refining and oil retail.

Powered by Capital Market - Live News