Aban Offshore is currently the top gainer on the BSE, up 12% at Rs.467 levels, with an intra day high at Rs.472.65. Volumes are up 2 times.

The stock shot up after news came in about the rating agency, CARE, upgrading its rating. It was upgraded to BB- Fm D. The report went on to say that its interest cost is expected to reduce by Rs.200 crore annually, which in turn will help improve its margins.

In Q2FY15, the company reported a 7% (QoQ) decline in net profit as its contract from Aban IV was completed, with the rig getting contracted to ONGC. Work on the same is expected to start from Q4FY15. The company raised Rs.750 crore through QIP and proceeds were used to reduce debt and that is savings which CARE noted. Margins are expected to better in FY16