 "Essar Oil extends fall as Sebi revamps delisting norms")
Essar Oil has dipped 6% to Rs 102, extending its previous day’s 4% fall on the National Stock Exchange (NSE), on back of heavy volumes. The stock slipped below its floor price of Rs 108.18 fixed for the proposed delisting offer.
The stock opened at Rs 108 and hit a low of Rs 98 so far on NSE. The trading volumes of the counter jumped over four-fold with a combined 1.75 million shares changed hands till 1453 hours on NSE and BSE.
The Securities and Exchange Board of India (Sebi) on Wednesday announced changes to delisting regulations.
According to a press statement from the market regulator, a delisting shall be considered successful only when the shareholding of the promoter, together with shares tendered by public shareholders, reaches 90% of the total share capital. At least 25% of the public shareholders need to be part of a reverse book-building process.
Essar Oil plans to buy back 137 million shares, or 27.5% stake, held by the public.
The stock opened at Rs 108 and hit a low of Rs 98 so far on NSE. The trading volumes of the counter jumped over four-fold with a combined 1.75 million shares changed hands till 1453 hours on NSE and BSE.
The Securities and Exchange Board of India (Sebi) on Wednesday announced changes to delisting regulations.
According to a press statement from the market regulator, a delisting shall be considered successful only when the shareholding of the promoter, together with shares tendered by public shareholders, reaches 90% of the total share capital. At least 25% of the public shareholders need to be part of a reverse book-building process.
Essar Oil plans to buy back 137 million shares, or 27.5% stake, held by the public.