Essar group-owned India Securities Ltd (ISL) plans to delist from the stock exchange, a move that would help the promoters to consolidate the firm with other unlisted group investment entities.

The move to delist the company comes at a time when ISL is in the process of selling its 10.97% stake in telecom joint venture Vodafone-Essar to Vodafone group for about USD 1.26 billion.

The minimum delisting offer price is expected to be around Rs 56 per share as against the current market price of Rs 46 per piece. Promoters of ISL -- Essar Teleholdings and Essar Capital -- has about 75% stake in the company.

According to ISL, the promoters intend to consolidate stake in ISL, with unlisted group investments companies to form a single investment holding company.

As per data available on the Bombay Stock Exchange (BSE), at the end of June quarter, Essar Teleholdings and Essar Capital held 58.06% and 16.91%stake, respectively.

Analysts said the intrinsic value of the Re 1 face value of  ISL share, based on the cash to be received from Vodafone (net of taxes and debt) is about Rs 40, giving substantial return to investors.

Shares of ISL has appreciated more than 10 times in the last couple of years, they added. ISL holds 10.97% stake in Vodafone Essar and the process is on to offload that shareholding to Vodafone. ISL''s wholly-owned subsidiary ETHL Communications Holdings Ltd has entered into an definitive agreement for sale of its entire 10.97% stake to Vodafone for about USD 1.26 billion.

"The transaction is expected to close by February 15, 2012," ISL had said.  Shares of the company gained 4% to close at Rs 46.75 on the BSE.