MUMBAI: Essar Oil’s delisting offer failed to go through due to a technical glitch on the part of one of the custodians.
According to sources, Stock Holding Corporation failed to process Life Insurance Corporation’s order by 3.30 pm. Monday was the last day to tender the shares. LIC with 2.05 crore shares played a crucial role, being the largest institutional shareholder for the offer to be successful.
"The large order by the institution came well in time around 2 pm but the custodian took longer time to process it," said a person familiar with the development.
It is learnt that the company has referred the matter to market regulator Securities and Exchange Board of India and exchanges for their guidance. They are yet to hear from them.
The promoters of Essar Oil hold about 71.46 per cent stake in the company. To delist the shares from the bourses they need to buy back 9.25 crore shares, constituting 18.54 per cent stake, which would increase the promoter holding to 90 per cent.The floor price for the delisting offer is Rs 146.05.
It remains to be seen whether Sebi would grant an exception to this case and allow the order to be cleared or else the company would have to relaunch the offer.