Essar Oil Delisting ~ Love the Guy who has tendered at Rs 5630 !

😆 Love the Guy who’s tendered  on NSE for just 25 shares at Rs 5630 in the ongoing Essar Oil Delisting Endeavour !

Look at the NSE Confirmed Demat Shares Tender Position as at 3.30 pm this afternoon

Who in their right mind would tender at Floor Price of Rs 146.05  or even below Rs 200 when current market Price closed at Rs 225 + levels ! ~ Yet some have !

Most No of Tenders so far have come in at Rs 240

Last date is on Monday,December 21,2015

Wonder what LIC will be doing  with their holding !  

Essar Oil Limited

As on 17-Dec-2015 15:30:00 IST

Price

No. of Orders

Demat

Cumulative Demat

 

146.05

14

505

505

 

150.00

1

200

705

 

152.00

1

150

855

 

152.05

1

200

1,055

 

156.00

1

0

1,055

 

160.00

1

175

1,230

 

180.00

1

100

1,330

 

185.00

1

0

1,330

 

190.00

1

0

1,330

 

200.00

7

700

2,030

 

207.00

7

0

2,030

 

209.90

2

7,900

9,930

 

210.00

8

2,705

12,635

 

214.90

2

300

12,935

 

215.00

7

2,02,607

2,15,542

 

218.00

2

400

2,15,942

 

218.20

1

300

2,16,242

 

219.00

1

18,282

2,34,524

 

219.80

2

1,500

2,36,024

 

220.00

19

75,117

3,11,141

 

220.75

1

50

3,11,191

 

222.00

5

80,834

3,92,025

 

223.00

1

0

3,92,025

 

224.00

1

10,000

4,02,025

 

224.80

1

600

4,02,625

 

224.90

1

50

4,02,675

 

225.00

17

42,28,421

46,31,096

 

230.00

19

86,105

47,17,201

 

233.00

2

600

47,17,801

 

235.00

8

26,599

47,44,400

 

236.00

1

20,000

47,64,400

 

238.00

2

2,250

47,66,650

 

239.00

4

10,13,451

57,80,101

 

239.40

1

200

57,80,301

 

239.50

1

1,000

57,81,301

 

239.75

1

100

57,81,401

 

239.80

1

890

57,82,291

 

239.85

1

1,000

57,83,291

 

239.90

1

75,000

58,58,291

 

240.00

197

88,71,013

1,47,29,304

 

242.00

1

0

1,47,29,304

 

245.00

1

250

1,47,29,554

 

250.00

5

1,840

1,47,31,394

 

255.00

1

300

1,47,31,694

 

275.00

1

10,051

1,47,41,745

 

280.00

1

100

1,47,41,845

 

290.00

1

300

1,47,42,145

 

300.00

4

3,340

1,47,45,485

 

325.00

1

200

1,47,45,685

 

330.00

1

729

1,47,46,414

 

350.00

1

1,500

1,47,47,914

 

400.00

1

100

1,47,48,014

 

496.25

1

400

1,47,48,414

 

500.00

2

675

1,47,49,089

 

550.00

1

600

1,47,49,689

 

600.00

1

400

1,47,50,089

 

700.00

2

16,500

1,47,66,589

 

5,630.00

1

25

1,47,66,614

 

If interested check out my earlier blog last week (with updates) for the full Delisting Story

Essar Oil Sets Rs 146.05 As Floor Price For Delisting ~ Critical Questions Remain
December 7th, 2015

 

Essar Oil sets Rs 146.05 as Floor Price for delisting ~ Critical Questions remain

Essar Oil sets Rs 146.05 as Floor Price for delisting ~ Current Market Price is @ Rs 210 ~ What will be the discovered price ?

Some Critical Questions yet in the air

  1. Six Years ago,LIC had picked up Rs 300 crs+ of Essar Oil in January 2010 at Rs 140 a share ~ Will they be participating in the delisting exercise and at what price? ~ assuming 15% CAGR the price is Rs 320+ ~ hope they support the concerns and interests of the smaller Minority shareholders ~ nasty suspicion that they will not and it’s probably a done deal between Essar Group and them !
  2. Essar Oil Promoter Group Companies have committed, as per SEBI Order in November 2015 that cleared the controversial delisting,that they will going forward pay also any difference incremental between Rosneft Deal price (yet being negotiated) and the actual delisting price .However this commitment is only to those who’s shares have been accepted in this delisting exercise ! What then is the fate of those minority shareholders who do not participate in this delisting exercise or who’s shares are not accepted!?
  3. SEBI Order gets Essar Group Price Differential Commitment only for  stake sell to Rosneft being negotiated ! ~ What if Essar Group does  stake sale  to any other instead !? ~ Recent News Reports talks of interest from others

SEBI & Essar Group need to clarify on Points 2 & 3 above

In fact SEBI should have only given the green signal for delisting once the Rosneft Deal Price was declared

Check out my below blogposts right from June 2014 where I have strongly raised these issues and more to highlight how Essar Group cares little for Minority Shareholder Interests.

If Essar Group  had had their way they would have delisted at a pathetic floor price of Rs 108 last year  ~ In a sense these shares would be then have been on their way to being offloaded to Rosneft at twice or thrice the price !

    

Essar Oil surges to Rs 200+ on SEBI Order for Delisting~5 Questions for SEBI!

Monday, November 9th, 2015

Essar Oil kissing Rs 200 ! ~ Exposes Delisting Duplicity !

Monday, July 20th, 2015

Essar Oil on Fire at Rs 167 after delisting natak last year at Rs 108

Monday, July 6th, 2015

Covered by Outlook Business for frowning on Essar Oil Delisting

Wednesday, July 23rd, 2014

LIC will never go Public & Essar Oil wants to go Private ! ~ What is the Connection !?

Saturday, June 21st, 2014

Update on Tuesday,December 8,2015

The Delisting Opens on December 15,2015  and closes on December 21,2015

All those who held the share on December 5,2015 will be dispatched the Offer Documents on December 11,2015

Should a Holder participate in this Delisting  & if so at what Price should he tender ?

This is where the SEBI Order is flawed ! because it closes the door to public shareholders leaving them no option but to tender the shares in the Delisting Offer !

Why?

Because if  a shareholder does not tender in the delisting offer or tenders at above the discovered price to be announced by Promoter on December 30,2015 and his tendered price is not the Exit Price and the Promoter accepts the Discovered Price or offer an Exit Price at it’s discretion even above the Discovered Price but below shareholders tendered price then his shares will not be accepted

Staying away from the Delisting Offer or having tendered shares rejected in the delisting will disqualify the Shareholder from receiving any incremental between Rosneft Deal Price going forward if higher than Exit Price announced by Promoter in this Delisting

Such a Shareholder will thus get only the Delisting Exit Price going forward

On more thing I reiterate ! What if there is no Rosneft Deal but Essar Oil enters into a deal with some other Entity for a strategic stake !? Then the committment by Promoters for any Incremental payable to Shareholders will be off ! as SEBI Order merely mentions such a committment for only a potential Rosneft Deal going forward

The Delisting can only fail if all public shareholders unite and not tender or tender at a much higher Price in excess of Rs 300 or Rs 350 perhaps ! read more

A Rhetoric Question ~Will Petrol In India go back to 1963 Rates !?

Petrol Bill of 1963

🙂 Will Petrol go back to 1963 Rates in India as on this old bill from then  ! ? ~ Question is of course rhetoric !

Read that again ! It’s just Rs 3.60 for a full 5 liters !=> that’s 72 paise a litre  nearly 53 years ago on February 2,1963 !…it’s surged   to current @ Rs 70 a litre which is in absolute terms 9600+% and in CAGR Terms just 9%

You can dramatically of course say that 72 paise has become 72 rupees in just over half a century ! 

Today everyone has an Opinion on Oil Rates !

Of Course very Few ,if at all any, had predicted in  mid 2014 that they would halve from US $ 100/barrel

Now many are predicting they will halve even from current US $ 41.65 (WTI) & US $ 44.61 (Brent) ! .Here’s an interesting article of October 2015 on Oil & the Syrian War

Great for India if it does halve from the halve already in on year !…it’s cushioned our FY 15 & FY 16 significantly as we import 3/4 ths of our growing requirements and we are growing at 7.4% GDP  on last count 

Oil’s Well that ends Well !

India is in a sweet spot !…for now…will it get sweeter?

Essar Oil surges to Rs 200+ on SEBI Order for Delisting~5 Questions for SEBI!

Essar Oil surges to Rs 200+ on SEBI Order for Delisting ~ 5 Questions for SEBI !

Essar Oil again seems to be getting away !

SEBI should have shown some muscle and teeth and independence in ordering  either :

  1.  Compulsory Delisting of Essar Oil for the all the continuing  Corporate Governance Issues it keeps raking up heedless to minority shareholders concerns and even other warnings! or
  2. Delisting only post announcement of Price at which Russia’s Rosneft is negotiating under an understanding written agreement to acquire a 49% stake in Essar Oil ~ what’s the hurry by Essar Group to delist Essar Oil now before they announce Rosneft Deal price !

Instead Essar Oil Promoter Company,Essar Energy has received what it sought from SEBI …a relaxtion on timelines of two months from the date of  November 6,2015 the SEBI Order  for the voluntary delisting and  Five days instead of two days for the despatch of documents  to shareholders and permission to delist

Essar Energy ,who filed the SEBI Application for Relaxtion in timelines,of course has agreed ( like it had any other choice !) to :

  1. Revise the Floor Price in the Delisting upward from what it had declared in 2014
  2. Pay the difference subsequently ,if any, to shareholders who tender their shares in the delisting offer and which are accepted, between the Delisting Price & the Price negotiated with Rosneft for taking over 49% of the Equity
Essar Group states there is no agreement yet that has been arrived at with Rosneft on the Price and in fact had told SEBI they were willing to pay the above difference if the Rosneft Deal took place within a year !…what if they deliberately delayed it over a year !?…thus SEBI has rightly said no timeline for this should be there Just further reconfirms the manipulating mindset of the Essar Oil Promoters in depriving minority shareholders of a fair price for delisting ~ they are also grappling more serious accusations in the 2G Telecom Scam that’s with the CBI

If you recall Essar  wanted to delist at a floor price of just Rs 108 in 2014,even before they announced the Rosneft Deal being negotiated ! ~ I had raised serious corporate governance questions then and was quoted in the media for these ….fortunately SEBI put the Essar Oil delisting on hold at floor price of Rs 108

But now I have 5 questions for Prashant Saran of SEBI who has signed this Seven Page Order and I’ve re-read it  !

  1. Why do you not proactively consider Compulsory Delisting for Essar Oil for the ever growing Corporate Governance Issues so as to invoke a 10 year ban on it’s Promoters from accessing Capital Markets again?
  2. Why allow the Voluntary Delisting before the several complaints received  by you as cited in the SEBI Order have been resolved ~ particularly the Accounting & Non Disclosure in Accounts Complaints which you are referring to ICAI for investigation ?   
  3. Why allow the Voluntary Delisting before Rosneft Price is announced !?
  4. SEBI Order is silent on this ~ What is the status of  those Minority Shareholders who decide not to participate in the Delisting but wish to decide on this later for Essar Group to buy their shares out only after Rosneft Deal Price is announced  !?
  5. Don’t you think in interest of Investor Awareness &  Protection it should be made mandatory for SEBI to put up on it’s website the names of all listed companies where investigations are pending proactively or reactively on complaints or for any other reasons along with the details of the matters being investigated ?….this has been a long standing view of mine for several years as it will greatly help in managing investing risks before any SEBI Order is actually made

No 4 above is important now that SEBI has allowed the delisting  ~ The Order is explicit in that Essar Energy will be responsible to pay any difference between delisting price and Rosneft fixed price within a specified time of two months of public announcement  to only those shareholders who have tendered  their shares in the delisting and which have been accepted ! ~ what about other shareholders who have not participated in the delisting or whose shares have not been accepted in the offer  !? ~ they too should get the full Rosneft Price if higher than the delisting price ! ~ this cannot be assumed and needs to be explicit in the Order ! 

I’m sure this is an oversight by SEBI !

Whatever !….my view remains on what SEBI should have done as expressed in the two options at the beginning of this blogpost !

I have been vocal on the corporate governance issues in the  Essar Oil Delisting Endeavour from 2014 and have been quoted in mainstream media for this…..read these past four  blogposts to get a sense of the attempt to short circuit the interests of minority shareholders

Essar Oil kissing Rs 200 ! ~ Exposes Delisting Duplicity !

Monday, July 20th, 2015 

Essar Oil on Fire at Rs 167 after delisting natak last year at Rs 108

Monday, July 6th, 2015 

Covered by Outlook Business for frowning on Essar Oil Delisting read more

Wow! A Full House NSE Training Fundamental Workshop !

Wow! A Full House NSE Training Fundamental Workshop yesterday !

Seems to get bigger & better every time !

Did the first one on August 8,2015 and had blogged on it  as linked below

Interesting Interaction at the NSE Equity Fundamental Training Workshop

Sunday, August 16th, 2015

Did this one too on “Interpretation of Financial Statements for Stock Analysis” under NSE’s Rapid Series at their NSE BKC Complex

@ 30 Participants,both genders aged 22 to 58 from leading Broking Firms,Corporates,Banks and even Individuals who had come on dot and stayed till 8 pm ! expecting to learn how to read financial statements and  market dynamics to assess risks and opportunities in Indian Equities

Common Question right from Manish Shah,who introduced himself  to me in the lift going up to the Class ” How are the Markets Looking “? ~ “Where will the Sensex & Nifty head in the short term”?

Had taken a Bull along ! really !…a smaller version of the Wall Street one….told the class I love four animals…Elephants (Lord Ganesha),Lions (My Zodiac Sign),Tortoise(Good Luck & of course Bulls (I’m always one!)….and you’ll always find them on my office desk !…in fact four bulls of various sizes !…and clients know my market view on simply seeing how the bulls are placed !…if facing them straight up  (↑)  as they sit across me,I’m very bullish…if slanted ( ⁄ )towards them,I’m bullish…slant inclination reveals how much !….if a horizontal view (↔ ) then indicates market will remain flat to rangebound and if the bulls face me vertically (↓ ) I’m bearish !….and slant facing me shows intensity of being bearish !

That got a few knowing laughs from the participants and set off the mood for the Workshop with humour being interspersed right through

Interacted on the Sensex Dynamics right from base year 1978 and in the last 20 years from November 1,1995 to October 30,2015 when despite nearly half of the @ 4850 trading days saw the Sensex close negatively the Sensex ran up over 650% !…but is that enough!…..the Opportunities & Threats that were clearly visible during the years right from 1991 when Modern Reforms set in to 2001 when Markets had bottomed  out on the ICE Age Melting to the Sharp drop in Interest rates from 14% to 7% in and around 2004 to post Lehman 2008 levels of 8000 in October 2008 and March 2009….showed them from current Sensex of 26657 how to assess fundamentally where we could be heading and the risks associated….discussed Passive Index Investing vs Active Investing and therefore the need for Fundamental Analysis and therefore the need to Interpret Financials & therefore the need to assess Value vs Price  & therefore this Workshop  ! read more

What A Shame!~LIC bails out Government with US $ 1.2 b in IOC Disinvestment

Just a few days ago I had blogged that the IOC Disnvestment on Monday will be just a formality….But Monday’s Global Stocks Chinese Contagion Capitulation saw a very very poor response to the IOC  Disinvestment

It’s a real shame that the Government yet again  had to direct/order LIC to bail it out yet again…it would have been a wise idea to defer the issue rather than order LIC to invest in 86% of  Issue of Rs 9379 crs  bat Floor Price of Rs 387 !…. shoots up  LIC holding in IOC by a whopping 8.59% from 2.52% to 11.11%….it’s another issue that IOC is past Rs 400 today on signing a refinery deal with Nepal

This then sadly was not a real disnvestment just as it was not for a similar 10% last year too when Oil India & ONGC were ordered to pick up 5% each at Rs 220 .,,,just another continuing story of government selling from one PSU to another !

Its no wonder LIC does not want to go public ! and neither is the Government inclined to make it public !

Raises Huge Corporate Governance Issues on Investment Decision Making,Accountability and Tranparency

It’s happening for decades now….UTI was first the Big Market Daddy in the 1970’s to 1990’s before India opened out to FIIs and Other Mutual Funds that saw UTI losing it’s war of words with SEBI to be brought under it’s regulations….in the late 1980’s the UTI Chairman then had opened out to me in a candid interview on UTI’s Investment & Disinvestment Decisions Process,sometimes buying a company’s shares through one broker and selling the same company’s share on the same day through another !, and Competition emerging from other Mutual Funds sponsored by PSU Banks that were allowed to be set up .It was to be carried in a leading Magazine…it was explosive and so I send him the transcript to confirm he was not being misquoted….Phew! he panicked and  asked me not to carry the Interview….had told him it would be the Editor’s call….it was not carried finally !

LIC  yet stays out of SEBI regulation though its the Biggest Shareholder in Indian Equities and functions like a Government Proxy

Who’s to Question LIC !…or for that matter the Government ?…and the Disinvestment Secretary boasts of how with this Disinvestment it’s a been the best first half of the year in the last many years for Disinvestment Proceeds !

It’s the Cash Cow for the Government to lead and order the flow wherever it conveniently wants Investments ! read more