Shares of Essar Oil slipped 11.71 percent to close at Rs 72.75 on Monday despite receiving phase III environmental clearance for its coal bed methane gas field at Raniganj, West Bengal.
With the environmental nod granted by the government of India's Ministry of Environment and Forests, the company is allowed to increase drilling to 650 wells.
"This environmental clearance allows the full field development of the Raniganj block, excluding forest area, and will enable Essar Oil to increase production to the targeted level of around 3 million standard cubic metres of gas per day (scmd), up from 60,000 scmd currently," the company said in its release sent to exchanges.
So far, 135 wells have been drilled at Raniganj, of which 57 are in production.
Shares tanked more than 15 percent intraday on Bombay Stock Exchange today.
Trading volumes increased 404 percent to 27,50,544 equity shares as against five-day average of 5,45,592 shares.
Essar Oil stock price
On November 27, 2015, at 15:34 hrs Essar Oil was quoting at Rs 209.00, down Rs 0.55, or 0.26 percent. The 52-week high of the share was Rs 220.15 and the 52-week low was Rs 91.85.
The company's trailing 12-month (TTM) EPS was at Rs 12.84 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 16.28. The latest book value of the company is Rs 26.56 per share. At current value, the price-to-book value of the company is 7.87.
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