Essar Shipping tanks 6% on delist fiasco
Shares of Essar Shipping tanked on Tuesday on announcement that the reverse book-building process by Essar Shipping & Logistics to delist Essar Shipping from BSE has failed to attract the required number of shares from public shareholders. As per BSE announcement, Essar Shipping will continue to remain listed and the shares deposited in the special depository account of the trading members will be returned to the respective public shareholders.
“As the aggregate number of shares tendered by the public shareholders was less than the number required to reduce the public shareholding of (Essar Shipping) to fall below minimum public shareholding determined as per the provisions of the listing agreement, the delisting offer has failed in terms of the guidelines and no securities can be acquired pursuant to such delisting offer”, said the stock exchange announcement.
Earlier, Essar Shipping & Logistics had made an offer to acquire 10.03 crore shares representing 23.54% of the fully paid-up equity capital of Essar Shipping. The floor price for the same was fixed at Rs 31.62 per share. The stock of Essar Shipping lost nearly 6% on Tuesday to end at Rs 40.35.
