Shares of energy major Essar Oil rose over five per cent on the BSE after its parent firm Essar Energy today announced its plans to list on the London Stock Exchange.
Billionaire Shashi and Ravi Ruia led Essar Group today said it will list Essar Energy on the London Stock Exchange and has initiated the process of seeking regulatory approvals for the $2.5 billion IPO.
However, the company clarified that it would not delist Essar Oil from the BSE. After opening on a weak note on the Bombay Stock Exchange, the scrip zoomed 5.59 per cent to touch a high of Rs 153.85. The stock was quoting at Rs 152.10, higher by 4.39 per cent in the afternoon trade.
A similar movement was witnessed on the National Stock Exchange, where the stock was trading at Rs 152.15, up 4.39 per cent. The gain was against the broader market mood that was negative. The Sensex was quoting at 17,853.22 points, down by 0.65 per cent in the afternoon trade.
On the volume front, over one crore shares of the company changed hands on the two bourses. Essar Energy Holdings has 88.4 per cent in Essar Oil -- the company that owns a 14 million tonnes refinery at Vadinar in Gujarat and an array of oil properties in India and abroad.
Upon completion, the billionaire promoters Ruias' Essar Group would hold a minimum of 75 per cent, and it would be listed on the LSE, Essar Energy Vice Chairman Prashant Ruia said.
Essar Energy operates oil and gas businesses through Essar Oil with a public float of 11.42 per cent.