Aban Offshore slips over 16% on profit taking

The stock has been on a downtrend for the past five trading sessions

Aban Offshore, India's largest offshore drilling services provider to oil companies, slipped over 16% to Rs 539.15, continuing its downtrend seen over the past five trading sessions.

Last week, the company has started its plans to raise around $500 million by listing its Singapore subsidiary. The fund mobilised would be used to repay part of its debt, which is currently around Rs 14,000 crore.

Meanwhile, the company also said it would save around Rs 60-70 crore every year, since it has converted major chunk of its loans into dollar-denominated ones from Rupee.

The stock had opened at Rs 640 and edged a bit higher to Rs 647.40 after which selling pressure dragged the stock to a low of Rs 535.10. A total of over 16 lakh shares changed hands on BSE and NSE till 1100 hrs.

The company has been one of the top gainers in the recent outperformance of the broader markets with the stock gaining upto Rs 940 on July 8, 2014.