SAT stays Essar Steel's delisting plans
The Securities Appellate Tribunal (SAT) has stayed the delisting of Essar Steel shares from the stock exchanges in an unprecedented, last-minute move on Wednesday.
By TNN |
MUMBAI: The Securities Appellate Tribunal (SAT) has stayed the delisting of Essar Steel shares from the stock exchanges in an unprecedented, last-minute move on Wednesday. The stock of the company, owned by the software-to-shipping conglomerate, was supposed to be delisted on December 14 after the company said that the open offer had successfully resulted in a discovered price of Rs 48 per share.
In September, the promoters of Essar Steel had made an open offer to acquire 14.72 crore shares, or 13% of the equity, at Rs 48 per share. While the book-building offer closed on October 3, 2007, there was no intimation on the public response to the offer.
Acting on a petition filed by some investors, SAT stopped the delisting and said that Essar Steel will remain listed. The Bombay Stock Exchange (BSE) on Wednesday informed its members that the trading in the equity shares of Essar Steel will not be suspended and delisted.
Declining to comment on the content of the SAT order, Essar Steel spokesperson said, “The company has completed the delisting formalities pursuant to the Sebi Guidelines 2003 in an open and transparent manner. The company and the promoters have complied with all the requisite laws and regulations on delisting of the stock. Accordingly, BSE and NSE have accorded their approval for delisting of shares.”
According to BSE website, the promoters held 87.08% stake as on September 30, 2007, while the public held 6.7% in the company. The official said that the promoters have increased their stake by 4% through the open offer.
The stock of Essar Steel shot up 26% to Rs 59.3 in the last one week. On Wednesday, the stock flared up 5.99% on BSE.
In September, the promoters of Essar Steel had made an open offer to acquire 14.72 crore shares, or 13% of the equity, at Rs 48 per share. While the book-building offer closed on October 3, 2007, there was no intimation on the public response to the offer.
Acting on a petition filed by some investors, SAT stopped the delisting and said that Essar Steel will remain listed. The Bombay Stock Exchange (BSE) on Wednesday informed its members that the trading in the equity shares of Essar Steel will not be suspended and delisted.
Declining to comment on the content of the SAT order, Essar Steel spokesperson said, “The company has completed the delisting formalities pursuant to the Sebi Guidelines 2003 in an open and transparent manner. The company and the promoters have complied with all the requisite laws and regulations on delisting of the stock. Accordingly, BSE and NSE have accorded their approval for delisting of shares.”
According to BSE website, the promoters held 87.08% stake as on September 30, 2007, while the public held 6.7% in the company. The official said that the promoters have increased their stake by 4% through the open offer.
The stock of Essar Steel shot up 26% to Rs 59.3 in the last one week. On Wednesday, the stock flared up 5.99% on BSE.
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