Essar Oil fixes floor for delisting at Rs 146.05

India’s second largest non-state oil refiner said the floor price to buy out the non-promoter shareholding of 28.54 per cent will be Rs 146.05.

The price is 30 per cent lower than Rs 210.15 per share, the level at which Essar Oil closed on the BSE on Friday. The final exit price would be decided through a reverse book building offer between December 15 and December 21.

Under the reverse book building process, one bids to tender stocks for sale above the floor price. JM Financial and Axis Capital are handling the offer.

Analysts feel the discovered price would be much higher as a much better exit is available on the open market itself. “The floor price is ridiculous. At this price, it is a failed offer. Everyone knows there is a deal with Rosneft and Sebi has asked them to match the price paid by Rosneft. The price discovery will happen at substantially higher level. Investors need not panic,” said Arun Kejriwal of Kejriwal Research and Information Services.