Essar Oil gets 'energized'

Essar Oil which had closed on Friday at Rs.108.40, today opened itself 5% higher at Rs.113.80, locked on the upper circuit.

The stock hit the ceiling on news that Essar Oil plans to delist its shares. This was a much anticipated news, ever since its parent, Essar Energy, based in UK delisted its shares from the London Stock Exchange. It was only a matter of time before the same was announced here in India. Essar Energy has a 71.22% stake in the company and it plans to buy back 13.7 crore shares or 27.53% stake. The company is yet to announce the delisting price.

Our Editor, Mr.SP Tulsian says, “Essar Oil management has been very investor unfriendly, as in the case of Essar Steel’s delisting. According to me, the right delisting price should be at least Rs 150 but it is unlikely the management will give that. I believe retail investors should exit if the Essar Oil price goes above Rs.125.”