Wednesday, March 21, 2007

Essar Shipping share buyback fails; company to remain listed

Essar Shipping has failed in its buyback of shares and subsequent de-listing from the bourses. As a result, the company has decided to continue being listed on the stock exchanges. The Essar Shipping share buyback, being facilitated through a reverse book-building process, closed on March 16. The company has notified the exchanges that the buyback offer for its de-listing did not get sufficient bids.

The company had fixed the floor price for the buyback offer at Rs. 31.62. Maximum number of bids was believed to have been received at a price of Rs. 50-51 per share, while 15-20 mn bids were even received at a price of Rs. 75 per share. However, the total number of bids was not adequate to move ahead with the delisting process.

Meanwhile, the delisting process of another two group companies, Essar Oil and Essar Steel has been progressing as planned. The ballot papers have been sent to the shareholders and after they are returned, a public notice would be made and delisting would commence through RRB, after market regulator SEBI fixes the floor price for both the stocks.

Read The Economic Times article.
Related Post:
Essar Group to de-list Essar Steel and Essar Oil

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