Essar Oil hits upper circuit

Essar Oil had yesterday breached the lower circuit and today, it has hit the 5% upper circuit at Rs.112.

The stock has been in the limelight ever since it announced its decision to delist and yesterday, the company announced the delisting floor price of Rs.108.18. This was 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.”