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| Edited By: Satish John |Source: |Updated: Sep 15, 2017, 01:46 AM IST
Friday to be last day of trading for the shares
MUMBAI: The shares of Ruia group flagship Essar Steel, formerly known as Essar Gujarat, won’t be on any stock ticker beginning next week.
Shareholders of Essar Steel, which entered the bourses in the nineties with a lot of promise, but miscalculated the steel commodity cycle like many others, never got their investment’s worth. And now, while the company is on the growth path, minority shareholders will not be part of the venture anymore.
After the Securities Appellate Tribunal (SAT) vacated a stay on delisting of Essar Steel shares, the stock exchanges declared Friday as the last day for trading. Many investors rushed to exit, but the share plunged 9.92% to Rs 57.20, from Tuesday’s close of Rs 63.50.
“With today’s order, trading in the shares will get discontinued from the closing hours on Friday, December 14, 2007, and the shares will be delisted on Monday, December 24, 2007,” an Essar Steel statement said.
Essar Steel, which has completed the delisting formalities, said the two premier exchanges have taken steps for delisting of shares.
The exit option for shareholders who have not tendered the shares will be kept open at the rate of Rs 48 per share, this being the exit price determined to the remaining public shareholders for a period of six months from the date of delisting.
SAT’s decision was in response to an appeal filed by Yatindra Jit Singh, an aggrieved shareholder. The counsel for Essar Steel argued that Singh had purchased the shares in January this year despite knowing about the delisting process. The tribunal, which had earlier given the aforesaid stay order on an ex-parte basis, vacated the same on Wednesday.
