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.
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Essar Group to de-list Essar Steel and Essar Oil

Essar Group to de-list Essar Steel and Essar Oil

The Essar Group plans to de-list Essar Steel and Essar Oil following a similar move by the group on Essar Shipping last month. The proposed de-listing is aimed at gaining more flexibility in running the companies. The group has already de-listed its BPO subsidiary Aegis Communications and telecom arm Essar Teleholdings from the US and domestic bourses. The Essar Group is in the midst of organizational restructuring and might list its holding firm Essar Global with an overseas bourse, though not as of now. Six holding companies for six businesses, namely, power, steel, energy, shipping, communications and special economic zones, have been set up to handle the group’s interests across the globe.

Read the Business Standard article.