Essar Oil delisting gets through as Sebi clears LIC Bids

Essar Oil's delisting on Wednesday got through as the markets regulator Sebi gave its go-ahead to the stock exchange BSE to accept nearly 2 crore shares tendered by the state-run LIC for the promoters' buyout offer. The delisting had got mired in "technicalities" on the last day of the offer on Monday, after a large block of tendered shares could not be 'confirmed' within the stipulated time, prompting BSE to refer the matter to Sebi.

While the promoters' buyback offer had got more than sufficient bids, the non-confirmation of this large chunk of shares - tendered by LIC - had come in the way of the closure of the delisting offer. After looking into the matter in detail in consultations with all the stakeholders concerned, Sebi has now given its go-ahead for the confirmation of those shares, top officials at the exchange and the company said.
 

The offer is said to have received total bids for an estimated 10.1 crore shares, as against a requirement for 9.26 crore shares for the offer to succeed. However, over 1.98 crore shares tendered by LIC had remained 'unconfirmed' on the stock exchange platform till the time of the scheduled closure of the offer at 3.30 pm on Monday. Sources said the bids from LIC had come well within the scheduled time as shares tendered even later than LIC's bid got confirmed, but some "technicalities" led to the LIC shares remaining in the 'unconfirmed category'.
 

The issue was subsequently looked into by all the entities concerned -- Essar Oil, LIC, BSE and the custodian for LIC shares, StockHolding Corp. "Due to technicalities relating to timing of the confirmation of some of the institutional offers received for the delisting process of Essar Oil, the matter is being referred to Sebi for their decision," BSE had said earlier.