Essar Oil slips and falls

Essar Oil was up almost 5% yesterday, hitting a new high at Rs.153.80,  on news that the promoters of the company plan to sell 49% stake in Essar Oil to Russian oil and gas giant Rosneft for about Rs 10,500 crore. There was another report which stated that promoters will sell 51% stake at a premium to the market price and this was expected to trigger off a 26% open offer.

The company took its own time and issued a clarification only by late evening yesterday, denying this news.  The company, in a statement to the Stock exchanges said, "We would like to state that it is not our policy to comment on market speculations. The Company has already informed the Stock Exchanges last Friday, 12th June, 2015 stating that there is no event, information or development in the Company which is required to be intimated as per clause 36 of the listing agreement."

This has disappointed the market and the stock is currently the top loser on the BSE, down 7% at Rs.136 levels, its current intra day low levels. Volumes have also almost doubled from 7 lakh shares over past two weeks to 12.5 lakh shares today.