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Aban Offshore stock price went up by 16.16 per cent after news broke that a landmark Iran nuclear agreement has taken shape. The share price rose by 16.16 per cent to Rs 321.65 a share on Tuesday in the Bombay Stock Exchange (BSE).
Company officials could not be reached for a comment immediately. For Aban Offshore, which is engaged in oil exploration and production, the event has come as a key positive development, given its high exposure to the Iran market. Axis Capital sees a nearly 42 per cent upside in Aban Offshore.
The brokerage is of the view that if sanctions are lifted off Iran, it will lead to exploration and production (E&P) capital expenditure (capex) in the country.
Iran contributes 35 per cent to total revenues for Aban Offshore. The company currently has five rigs deployed in the country. Iran sanctions will aid Aban’s working capital situation, the brokerage said.
Axis Capital has a target price of Rs 610 on the stock. Till 11.45 am, the stock price was around Rs 283, which increased to Rs 319.3 a share at around 12.30 pm.
