Ruias to delist Essar Steel, Essar Oil

The Essar Group today said it will delist its steel and oil arms  - Essar Steel and Essar Oil - from the stock exchanges to gain more flexibility in running the companies.

Essar Steel Holdings and Essar Energy Holdings, the parent companies and the largest shareholders of Essar Steel and Essar Oil, respectively, have sought delisting from the Bombay Stock Exchange and National Stock Exchange.

Essar Steel and Essar Oil will seek approval from their board of directors for delisting on January 29 and 30, respectively.

Shares of both the companies rose more than 10% on the bourses. While Essar Oil was trading at Rs 63.40, Essar Steel changed hands at Rs 53.05 in intra-day trading.

"The delisting of equity shares will offer more flexibility in operations and management of the company, greater efficiencies and provide an exit opportunity for shareholders," the companies said in separate statements.

Essar Steel Holdings and Essar Energy Holdings are Mauritius-based subsidiaries of Essar Global. The promoter stake currently stands at 87 % and 88%, respectively, in Essar Steel and Essar Oil.