Essar Oil rallies nearly 5% as board approves delisting of shares

NEW DELHI: Essar Oil Ltd rallied as much as 4.98 per cent in trade on Monday, after its board approved delisting of shares from the BSE Ltd and National Stock Exchange of India Ltd.

At 09:20 a.m.; Essar Oil was locked in upper circuit at Rs 113.80, up 4.98% on the Bombay Stock Exchange.

Essar Oil, a unit of India's diversified Essar Group, said its board met on Sunday to decide on the proposal. The move is part of Essar Oil's plans to take the energy business of Essar Energy Plc private to provide increased financial flexibility to support its business needs, Reuters reported.

On Friday, the company said the delisting would take place after its founders buy the 27.5 per cent of Essar Oil that is owned by public shareholders.