Essar Oil hit an upper circuit limit of 5% at Rs 112 at 10:36 IST on BSE after the company said that its promoter, Essar Energy Holdings, has set a floor price of Rs 108.18 for the delisting proposal.
The announcement was made during trading hours today, 26 June 2014.
Meanwhile, the BSE Sensex was down 130.49 points, or 0.52%, to 25,183.25.
On BSE, so far 4.49 lakh shares were traded in the counter, compared with an average volume of 11.88 lakh shares in the past one quarter.
The stock hit a high of Rs 112 and a low of Rs 102.05 so far during the day. The stock hit a 52-week high of Rs 119.30 on 12 June 2014. The stock hit a 52-week low of Rs 44.50 on 31 January 2014.
The stock had outperformed the market over the past one month till 25 June 2014, rising 23.85% compared with 2.51% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 117.98% as against Sensex's 14.77% rise.
The large-cap company has an equity capital of Rs 1511.44 crore. Face value per share is Rs 10.
On Sunday, 22 June 2014, Essar Oil's board agreed to its promoters' proposal to de-list the company from Indian bourses.
After de-listing Essar Energy plc from London Stock Exchange (LSE), the Essar Group on Friday, 20 June 2014, had announced their intention to de-list Essar Oil from Indian bourses. The board agreed to seek the consent of the shareholders of the company for the de-listing proposal by way of postal ballot and e-voting.
In a notice to the Bombay Stock Exchange, Essar Oil said it had received a letter from its promoter, Essar Energy Holdings (EEHL) for voluntarily de-listing of the equity shares of the company from BSE and NSE by purchasing shares held by public. Mumbai-based Essar Group wants to buy all the shares it does not already own in Essar Oil.
EEHL, a company incorporated under the laws of Mauritius, being a promoter of the company, currently holds 35.47 crore equity shares, representing 71.22% of the issued equity shares of Essar Oil. Public shareholders hold 13.71 crore equity shares of the company, constituting 27.53% of the issued equity shares of Essar Oil.
EEHL said the delisting proposal would be in furtherance of the business strategy of Essar Energy Plc, of taking the entire hydrocarbon/ energy business of Essar Energy Plc private, i.e., unlisted, following the delisting of the shares of Essar Energy Plc from the London Stock Exchange on 10 June 2014. EEHL believes that the company requires sustained, substantial investment to develop and grow its businesses (especially the refining and marketing business). Full ownership of the company will provide EEHL with increased operational / financial flexibility to support the company's businesses and strategic needs. The proposed delisting offer by EEHL and the delisting of the company's equity shares from the stock exchanges is in furtherance of the strategic intent of the promoters to achieve greater flexibility for equity infusion into the company, EEHL said in a statement.
Essar Oil's net profit surged 404.6% to Rs 1008 crore on 7.5% rise in gross revenue to Rs 27691 crore in Q4 March 2014 over Q4 March 2013.
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. Essar Oil owns India's second largest single site refinery having a capacity of 20 MMTPA and complexity of 11.8, which is amongst the highest globally. It has a portfolio of onshore and offshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves & resources. There are more than 1,600 Essar-branded oil retail outlets in various parts of India.
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