Essar Oil cheered up by SEBI

The market is thrilled with Essar Oil and all credit goes to SEBI. The company is in the process of delisting and in a move which supports shareholders, SEBI has directed Essar Oil to raise its delisting price, bringing it in tune with Roseneft’s price offered to buy promoters stake. This is for the first time that SEBI has directed a company to revise its delisting price based on shareholders complaint and that too matching the price of its deal.

Earlier in July this year, the promoters, Ruia’s agreed to sell 49% of its stake to Russian oil giant, Roseneft. The details of the deal were not disclosed but unconfirmed news placed the deal valuation at close to Rs.45,000 crore.

SEBI has asked Essar Oil to make public, the details of the transaction including the number of shares to be purchased by Roseneft and the consideration finalized by the Russian company. All this within 10 of finalizing the price.

The stock price is currently up 12% at Rs.207 and it hit an intra day high at Rs.210.80, closer to its 52-week low of Rs.211.15.