The Essar Group announced delisting plans for Essar Steel over the weekend, fixing the floor price of Rs 38 per share for the reverse book-building process. Essar Steel’s share price fluctuated mildly to close at Rs 43 on the Bombay Stock Exchange by the end of trading on Monday. “Rs 38 per share is pittance. It can never be the fair price given the value of the assets and the buoyancy in the steel markets,” said a metals analyst.
However, with only 12.92 per cent shares remaining with public shareholders, it may not be easier for the Ruias to delist Essar Steel unlike the Essar Shipping. The promoters shelved delisting plans in Essar Shipping when they did not get the desired number of shares from the shareholders.