Investors hire lawyers to fight Ruia brothers over 'low-ball' Essar Energy offer

The committee has written to Prashant Ruia, chairman of Essar Energy, asking the company not to delist from the London Stock Exchange unless more than 50pc of free float investors accept the 70p-a-share offer.

The group has also written to David Lawton, head of markets at the Financial Conduct Authority (FCA), to make the regulator aware of the situation.

Although Essar Global is not acting outside FCA rules, an ongoing consultation would seek to change the relationship majority shareholders have with minorities.

Robert Hingley, director of investment affairs at the ABI, confirmed the actions to The Telegraph, saying: "We think this is really important. It is wrong in principle that an owner can bring a company to market, and say it understands the rules, and then just turn around and ignore them."

Mr Hingley pointed to the fact that Essar Global committed to safeguarding the listing of Essar Energy atv the time of its original 2010 initial public offering, but is now in a position whereby it can declare its takeover unconditional - and therefore delist the company - without buying a single share due to its control of the shareholder register.

He said that the choice shareholders face is either to take the 70p offer, or end up with shares in a private company in which they will have little control.

In mid-March, Essar Global made a 70p-a-share offer for Essar Energy, in which it controls a 77pc stake.

Shares in Essar Energy have slumped since its April 2010 float which saw it raise £1.2bn by the sale of a 23.2pc stake at 420p a share.

The flotation valued the business at £5.4bn, putting it inside the FTSE 100.

But the company’s shares have fallen as a result of India’s declining growth prospects and a series of legislative decisions.

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