Shares of Essar Shipping and Essar PortsBSE 18.20 % surged up to 20 per cent as the Essar Group plans to delist the two companies from stock exchanges.
Stocks of Essar Shipping zoomed 20 per cent to Rs 23.70, which was its upper circuit limit at the BSE.
Shares of Essar Ports rallied 18.20 per cent to settle at Rs 108.15. During the day, it surged 20 per cent to 52-week high of Rs 109.80.
The boards of directors of Essar Ports and Essar Shipping have approved a proposal they received from Essar Shipping & Logistics, one of the promoters, to delist shares from the BSE and the NSE.
Both companies will seek the consent of shareholders for delisting proposal through a postal ballot and e-voting.
In a filing to BSE today, Essar Ports said it has received an approval from promoter group companies including Essar Shipping and Logistics Ltd, Essar Projects (India) Ltd, Essar Steel India Ltd, Imperial Consultants and Securities Pvt Ltd and Essar Global Fund Ltd.
The promoters believes that the delisting of the share of Essar Ports from the stock exchanges would provide the promoter group increased flexibility to support the business and financial needs of the company and enable them to optimally fund the growth initiatives of the company.
Source: Economic Times