Essar Energy has climbed this morning after a court ruling in India wiped 26% of the company's share price yesterday.
The ruling appeared to put an end to Essar's use of a tax scheme for its oil refining operations in the state of Gujarat, which had seen the company defer $1.235bn in tax payments.
Essar now says it is "examining all legal options" and expects to file a review petition in the next 30 days.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The news of an appeal is what has helped the stock regain some of the lost ground on Wednesday. By 10:58, the shares were up 8.8% but the stock is still down some 20% from yesterday's open.
Since listing in May 2010, Essar has lost 64% of its value and may drop out of the FTSE 100 later this year.
BS
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
