Mumbai, Dec. 5: Essar Oil today announced a floor price of Rs 146.05 per share for its much-awaited delisting offer.

The offer, which will open on December 15 and close on December 21, is for 28.54 per cent of its equity. Shares will be bought in a reverse book building process, Essar Oil said in a notice today. On Friday, shares of Essar Oil had closed at Rs 210.15.

Based on the former delisting regulations of the Securities and Exchange Board of India (Sebi), the floor price came at Rs 108.18 per share, the company said. However, under the second method, the floor price worked out to Rs 146.05.

The company took into consideration two issuances of foreign currency convertible bonds on 2010. They were converted into equity shares in December 2013 at a conversion price of Rs 138 per share and Rs 153 per share. The weighted average price came out to be Rs 146.05 per share.

According to Sebi regulations, the floor price should be the higher of the volume-weighted average price paid for the acquisition by a promoter or any persons acting in concert during 52 weeks preceding the relevant date or the volume-weighted average price of its equity shares for a period of 60 days (Rs 77.53) preceding the relevant date.

Essar Oil said the delisting of its equity shares from the bourse is to achieve "complete operational and financial flexibility to promote the company's business or financial needs and to enable the promoter shareholders and the promoter to pursue strategic opportunities in respect of its investments''.