Sell Essar Oil, says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "In Essar Oil there is an option for the investors to do anything. For example, take this situation, this is precarious for all the retail investors. If I am a retail investor, already I have tendered my share in the open offer that means in this reverse book building or maybe the delisting offer, now what will happen to those shares? I won't be able to retrieve it back.""The upside was all capped for the retail investor but now if you analyse the whole technical snack, if the shares have all been uploaded by the stock holding after one minute that means there is no way Securities & Exchange Board of India (SEBI) will allow shares to go through. It is something like regular stock pain happens with all the brokers. Will they allow one minute delay? No. So I don’t think that the stock holding has a strong case or maybe SEBI can take a step in favour of the company or stock holding.""So now take two situations, suppose if it goes through and retail investors are not affected in anyway but suppose if for some reason if this delisting offer fails and company has to initiate the second buyback offer in that event, the share prices will fall to as low as Rs 180-160 or maybe sub Rs 200. So what will be the situation of the retail investor in that case? That is the only saving grace which SEBI can consider while accepting this but if they accept this 2 crore shares tendered by LIC, this will set a different kind of precedent which can get misused by the people going forward. So very precarious situation for the retail investors and those who have not tendered the shares, I will advise them to sell in the secondary market now," he added.