The delisting of Essar Oil looks imminent with the company alerting small shareholders about the delisting process, according to sources. On Friday, Essar Oil’s shares ended flat at R121 on BSE.
In a company disclosure on June 26, the oil exploration and crude refining company informed the exchanges that the floor price for the delisting has been set at R108.18 a share.
Essar Oil’s board of directors approved the delisting in a meeting on June 22. On August 6, the company announced the shareholders of the company have approved the delisting proposal through a postal ballot. YTD, Essar Oil has gained 122.02%, outperforming the BSE benchmark Sensex, which has gained 24.79% during the same period.
Essar Group stocks have recently been in demand on reports that the group is looking to delist all its companies. In May, Essar Oil, Essar Ports and Essar Shipping touched 52-week highs following these reports.
As per a Bloomberg report, the Essar Group wants to take its companies private as it considers them undervalued.