Essar Oil up 5% as board approves delisting proposal

Essar Energy Holdings, the promoter Essar Oil, is planning to delist the company from the NSE and BSE.

Essar Oil is locked in upper circuit, up 5% at Rs 114 on BSE, after the company said its board has approved the promoter’s proposal to delist company’s shares from the stock exchanges.

At 1015 hours, a combined around 795,000 shares changed hands and there are pending buy orders for 658,000 shares on the BSE and NSE.

The board of directors of the company at its meeting held on June 22, 2014 has approved and to take on record a letter dated June 20, 2014 received from Essar Energy Holdings informing it of a proposal to voluntarily delist the equity shares of the company listed on the two exchanges, Essar Oil said in a regulatory filing.

The oil and gas unit of the Essar Group and a subsidiary of London-based Essar Energy Holdings Ltd, is planning to delist the company from the NSE and BSE.

Essar Oil said it will seek the consent of the shareholders of the company for the delisting proposal by way of postal ballot and e-voting.

As of March 2014, the promoters held 72.47% stake in the company, while the remaining 27.53% or 137 million equity shares held by public shareholders, the shareholding pattern data shows.