Essar Oil, India's second-largest petroleum refiner stated today that Vadinar Power Company (VPCL), in which it held more than majority stake, in no longer its subsidiary due to a reduction in its stake in the company.
Essar Oil's holding in VCPL has come down to 26.01 per cent from 53.24 per cent, it said today in a release.
In a filing to the Bombay Stock Exchange (BSE), the oil giant informed, "Due to increase in paid-up capital of VCPL, the percentage shareholding of Essar Oil in VCPL has reduced from 53.24 per cent to 26.01 per cent and consequently VCPL has ceased to be subsidiary of the company."
The additional equity was raised by Essar Oil to part finance its expansion project for increasing its power generation capacity.
Essar's stock on the BSE closed 1.59 per cent down at Rs 148.90 as compared to its previous day close of Rs 151.30.