Essar Oil stock zooms 6.4 per cent | business | Hindustan Times
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Essar Oil stock zooms 6.4 per cent

business Updated: Mar 08, 2010 22:12 IST
Sandeep Singh

Essar Oil stock rose 6.4 per cent on Monday on news of the international listing of Essar Group’s power and energy business. The stock emerged as the top gainer among the BSE 100 companies, ending the day at Rs 149.

On Friday, the stock had risen 3.4 per cent after Essar announced doubling of its gas reserves. Overall, the stock has risen 10 per cent Since Friday.

“The stock will witness a re-rating over the next few days as more clarity comes in. The stock, however, looks bullish for the medium term,” said Aseem Dhru, CEO, HDFC Securities.

“The volumes have been good today and we can expect some more activity in the stock,” said Alex Mathew, head of research, Geojit Securites.

Two major developments have led to the renewed interest in the stock. While reports of its international listing (in London) to raise up to $10 billion (Rs 45,500 crore) came on Sunday, the group announced acquisition of US-based Trinity Coal for Rs 2,750 crore on Saturday. A source close to the development told HT that Essar Group is planning to raise $8-10 billion (Rs 36,000 crore to Rs 45,500 crore) through international listing of its energy business that includes coal, power, oil and gas.

“The company will raise funds for its planned acquisition of three refineries of Royal Dutch Shell and other expansion plans,” the source said.