Cairn India jumped 7.4% to Rs 139.35 at 12:40 IST on BSE after reports company is set to expand its crude oil and natural gas carrying capacity by laying a new gas pipeline from its Barmer Rajasthan field with an investment outlay of Rs 1400 crore.
Meanwhile, the BSE Sensex was up 332.08 points, or 1.29% to 26,046.74.
On BSE, so far 3.7 lakh shares were traded in the counter, compared with an average volume of 3.01 lakh shares in the past one quarter.
The stock hit a high of Rs 140.40 and a low of Rs 132 so far during the day. The stock had hit 52-week high of Rs 344.15 on 9 September 2014. The stock hit a 52-week low of Rs 121.25 on 24 August 2015.
The stock had underperformed the market over the past one month till 26 August 2015, falling 25.81% compared with 8.53% fall in the Sensex. The stock had also underperformed the market in past one quarter, declining 32.53% as against Sensex's 6.6% decline.
The large-cap company has an equity capital of Rs 1874.85 crore. Face value per share is Rs 10.
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The crude oil output would be expanded from 2 lakh bopd (barrels of oil per day) to 3 lakh bopd and natural gas carrying capacity from 6.3 mmscfd (million standard cubic feet per day) to 40 mmscfd, report said.
The capital cost of the project is approximately Rs 1400 crore. The main component of investment would go into the augmentation of existing Mangala Development Pipeline (MDP) from RJON-90/1 Block (Barmer, Rajasthan) to Bhogat Terminal (Gujarat) and development of new 30 inch pipeline from Raageshwari Gas Terminal to Palanpur for 280 mmscfd natural gas sale, report added.
Meanwhile, in the global commodities markets, Brent crude oil futures edged higher. Brent for October settlement was currently up $1.25 a barrel at $44.39 a barrel. The contract had fallen 7 cents or 0.16% to settle at $43.14 a barrel during the previous trading session.
Higher crude oil prices would result in higher realizations from crude sales for oil exploration firms like Cairn India.
Cairn India's consolidated net profit fell 23.6% to Rs 834.98 crore on 36.2% decline in total income to Rs 3190.66 crore in Q1 June 2015 over Q1 June 2014.
Cairn India is a part of the Vedanta Group, a globally diversified natural resources group with wide ranging interests in aluminium, copper, zinc, lead, silver, iron ore, etc.
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