Essar Oil delisting floor price at Rs 108.18; stock up 5%

MUMBAI: Shares of Essar Oil were locked at 5 per cent upper circuit after the company fixed the floor price of Rs 108.15 for proposed voluntary delisting of shares.

The board, on Monday, had approved delisting of shares from the BSE and NSE.

After taking Essar Energy Plc private from the London Stock Exchange (LSE), the Essar group has proposed to delist Essar Oil.

Promoters Essar Energy Holdings (EEHL) wants to buy back from the public about 13.7 crore shares (27.5 per cent) that it doesn't own in Essar Oil.

"Full ownership of the company will provide EEHL with increased operational/financial flexibility to support the company's businesses and strategic needs," the notice said. EEHL is the holding firm of the Ruais which is incorporated in Mauritius.

At 10:50 a.m.; the stock was at Rs 112, up 5 per cent, on the BSE. Over 4.69 lakh shares were traded in the counter against two-week average of 4.7 lakh shares.

There were 7,59,977 buy orders and no sellers in the counter.