Shares of Essar Oil wiped out initial gains and ended 5.5 per cent lower today on profit-booking as Russia's top oil producer Rosneft plans to buy 49 per cent stake in the company for about USD 3.2 billion.
The stock dipped 5.49 per cent to settle at Rs 178.25 on the BSE. During the day, it gained 5.16 per cent to Rs 198.35 -- its 52-week high.
On the NSE, shares of the company fell 5.58 per cent to Rs 178.25 at close.
In terms of volume, 35.17 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.
Rosneft will buy 49 per cent stake in Essar Oil for about USD 3.2 billion after excluding the Mumbai-based firm's flourishing coal-bed methane (CBM) business.
Rosneft, world's top listed oil producer, will get a hold in India's second biggest oil refinery as well as its 1,600 petrol pumps that will more than triple to 5,000 in two years.
The Russian firm will also supply 10 million tonnes a year of crude to Essar Oil's 20 million tonnes per annum Vadinar refinery in Gujarat for 10 years.
"Rosneft and Essar Oil & Gas Ltd / Essar Energy Holdings Ltd, companies incorporated and managed under the laws of Mauritius, have signed a non-binding Term Sheet with regard to Rosneft's participation in the equity capital of Essar Oil Ltd with a share of up to 49 per cent," Essar Oil said in a statement.
Meanwhile, in the broader market, the BSE benchmark index Sensex ended at 27,573.66, down 114.06 points.
