Essar Oil shares slide after denying stake sale to Russian firm

Essar Oil rubbished reports about its stake sale to Russian oil firm Roseneft but its shares took a hit in Tuesday's afternoon trade on BSE tumbling by seven percent before finally closing the day 2.05 percent down.

Speaking on the speculation about a possible 51 percent stake sell to the Russian firm which could have triggered a 26 percent open offer, the Ruia promoted firm told the Bombay Stock Exchange: "We would like to clarify that as on date there is no event, information or development in the company which is required to be submitted as per clause 36 of the listing agreement."

The scrip opened for the day's trade at Rs.149.40 from the previous close of Rs.146.45 and climbed to Rs.152.65 in early trade. However, it soon hit a bottom of Rs.135.85 before 11 a.m. and then recovered during the afternoon trade. By 2 p.m., the price was stabilizing at Rs.143.

By Athe end of the day, share prices fell by Rs.3 to Rs.143.45 compared to the previous close.

Stocks of the company had surged 50 percent in the last four trading sessions and hit a new 52-week high on Monday. Anticipation of positive developments in the company was attributed to the scrip's behaviour.

During January-March 2015, the company's total income decreased to Rs.15,609 crore from Rs.25,274 crore earned during the comparable period in 2014. Its net profit, however, stood at Rs.546 crore against Rs.100.80 crore in the corresponding year ago period.

The company on its website claimed it owns India's second largest single site - a 20 MMTPA capacity refinery at Gujarat's Vadinar - which is capable of processing some of the toughest crudes.