Billionaire Founders Said to Be Close to Delisting Essar Oil

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Essar Oil Ltd., India’s second-biggest non-state oil refiner, received National Stock Exchange of India Ltd. consent to delist its shares and is awaiting approval from BSE Ltd., people familiar with the matter said.

The company, founded by billionaire brothers Shashikant and Ravikant Ruia, is expecting BSE permission this week, said the people, who asked not to be identified as the matter is private.

Delisting the company would allow the Ruia brothers greater flexibility and less regulatory scrutiny while selling a stake in the refiner. Russia’s OAO Rosneft was reported as a suitor by The Economic Times in March.

“We will make an announcement as and when we have something to share,” Essar Oil Chief Executive Officer Lalit Kumar Gupta said.

Yatin Padia, a spokesman for BSE, and NSE’s Arindam Saha couldn’t immediately comment when reached by phone.

The shares rose 18 percent to 174.10 rupees at the close in Mumbai. The stock has surged 63 percent this year.

Essar Oil’s board approved the delisting plan more than a year ago. The proposal was put on hold in November after the Securities and Exchange Board of India, the stock market regulator, asked for a halt.

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