Essar Steel buyback through, finally
Essar Steel is likely to set Rs 48 as the exit price for shareholders who have bid in the reverse book-building process that ended on Wednesday, report Indulal PM & MC Vaijayanthi.business Updated: Oct 04, 2007 22:27 IST
Essar Steel is likely to set Rs 48 as the exit price for shareholders who have bid in the reverse book-building process that ended on Wednesday to de-list the company's stock from the Bombay Stock Exchange.
"Over 75 per cent of the shares tendered were in the region of Rs 48 a share. Hence the company may set this as the discovered, or exit, price," sources said. However, when contacted, the Essar spokesperson declined to comment on the schedule for delisting.
Against the 33 million shares required to cross the threshold of 90 per cent needed for delisting, the company has received over 54.8 million shares.
Essar Steel Holding, part of the Ruia-controlled Essar group, holds over 87 per cent stake in the company.
The group had made an offer to buy the shares held by the public, representing about 13 per cent of the company. The company set fixed a floor price of Rs 38 a share for buying back the stake.
The company has 4.6 million tonnes of steel-making capacity. It recently acquired a 4 million tonne steel plant from Algoma in Canada for $1.65 billion. Essar Steel plans to increase its steel capacity to 14.5 million tonnes over the next few years. Besides India, Essar Steel operates a cold rolling complex in Indonesia.