Essar to delist steel, oil firms

Move to gain operational flexibility.

The Essar group has decided to delist its steel and oil companies "" Essar Steel and Essar Oil. This follows a similar move by the group on Essar Shipping last month. The proposed delisting is aimed at gaining more flexibility in running the companies.

The group had also delisted its BPO subsidiary Aegis Communications and telecom arm Essar Teleholdings from the US and domestic bourses last year.

Essar Steel and Essar Oil will seek approval for delisting from their board of directors on January 29 and 30, respectively. The proposal will also be placed before shareholders for approval, in line with Sebi guidelines.

Promoter stakes in Essar Steel and Essar Oil stand at 87 per cent and 88 per cent, respectively.

While Essar Oil stocks closed at Rs 63.20, a 10.39 per cent jump over the previous day's close of Rs 57.25 on the BSE, Essar Steel closed at Rs 50.15, a 4.37 per cent jump over the previous day's close of Rs 48.05.

Analysts said the group, which was in the midst of organisational restructuring, might list its holding firm Essar Global with an overseas bourse. An Essar spokesperson, however, said there was no immediate plan to list Essar Global.

Six holding companies for six businesses "" power, steel, energy, shipping, communications and special economic zones "" have been set up to handle the group's interests across the globe.