Investors participating in Essar Oil’s delisting offer stand to record an appreciation of over 2.5 times on their investment, with the state-run firm LIC emerging as a big gainer.
Essar Oil’s delisting on Tuesday got through a major technical hitch after the markets regulator Sebi gave its go-ahead to the stock exchange BSE to accept nearly 2 crore shares tendered by LIC for the promoters’ buyout offer.
The company’s delisting offer saw shares getting tendered at a Reverse Book Build discovered price of Rs 262.80 each, which is at about 80 per cent premium to the floor price of Rs 146.05.
The discovered price for the delisting offer marks a huge jump from the share price of Rs 106.45 recorded a year ago, as also from its 52-week low of Rs 98 seen in June this year.
The offer is said to have received total bids for an estimated 10.1 crore shares, as against a requirement for 9.26 crore shares for the offer to succeed.
However, over 1.98 crore shares tendered by LIC had remained ‘unconfirmed’ on the stock exchange platform till the time of the scheduled closure of the offer at 3.30 pm on Monday.
LIC will garner more than Rs 500 crore for nearly two crore shares tendered by it in the offer, marking a one-year appreciation of about Rs 300 crore.
Essar Oil shares had closed sharply higher at Rs 243.35 at BSE on Monday, a gain of nearly 8.5 per cent. The stock was down more than 1 per cent yesterday, but bounced back on Tuesday and closed over 6 per cent higher at Rs 254.50.
The stock had risen 96 per cent last year, as against a gain of 32 per cent in the benchmark Sensex. This year also, the Essar Oil stock has appreciated by about 97 per cent, as against a decline of over five per cent in the Sensex.
Earlier, in the case of Essar Ports’ delisting, the promoters had paid Rs 133 per share — a premium of 42 per cent to the floor price of Rs 93.66 in that case. The delisting offer of Essar Oil had begun on December 15 and closed on December 21.
The promoters had offered to delist the company from local bourses by buying out the non-promoter shareholding of 28.54 per cent.