Essar stocks surge

Essar Ports and Essar Shipping are literally on fire, with Ports currently up 11.5% at Rs.102 and this is after hitting new 52-week high at Rs.10515. Essar Shipping breached the upper circuit at Rs.23.70 and and it is currently up almost 18% at Rs.23.20.

Both the stocks are reacting to the news that the Essar group is planning to delist both, Essar Ports as well as Essar Shipping from the Indian bourses due to lack of investor appetite for promoter group’s need for increased flexibility. Both the companies will be seeking the consent of shareholders through a postal ballot and e-voting.

The promoter group holds 75% stake in Essar Shipping and 25% in Essar Ports. The group is already in the process of delisting Essar Oil and it has already delisted Essar Energy Plc from London stock exchange.