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Essar Oil gains on the buzz to ink $1 billion loan deal with China Development Bank

21 May 2013 Evaluate

Essar Oil is currently trading at Rs. 81.80, up by 0.30 points or 0.37% from its previous closing of Rs. 81.50 on the BSE.

The scrip opened at Rs. 82.15 and has touched a high and low of Rs. 82.90 and Rs. 81.65 respectively. So far 184013 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 96.15 on 04-Feb-2013 and a 52 week low of Rs. 46.00 on 31-Aug-2012.

Last one week high and low of the scrip stood at Rs. 83.70 and Rs. 79.15 respectively. The current market cap of the company is Rs. 11184.81 crore.

The promoters holding in the company stood at 15.96% while Institutions and Non-Institutions held 4.05% and 5.99% respectively.

Essar Oil is reportedly planning to ink a $1 billion loan deal with China Development Bank (CDB) during Chinese Prime Minister Li Keqiang's visit to Mumbai. The loan deal with the bank will be backed by supply of refined products from Essar's Vadinar refinery in Gujarat to top state oil producer PetroChina.

The heavily indebted groups for this will sign a three-way memorandum of understanding on a ‘funding for fuel’ agreement between itself, CDB, and oil producer PetroChina, which will be the first such arrangement involving a big Indian company. As per the agreement, PetroChina will buy fuel from Essar for 7 to 10 years.

The company as a part of initiative to dollarize debt has been in discussion with several international banks, including Chinese banks. CDB is part of this initiative.

Peers
Company Name CMP
Reliance Industries 1343.45
Indian Oil Corp. 144.15
BPCL 308.00
HPCL 370.15
MRPL 174.95
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