Essar Energy plummeted on Tuesday afternoon after its Indian oil division was told that it is no longer eligible to benefit from a deferred tax payment scheme.
Shares plummeted 28% to 48.5p in late trading after the Indian Supreme Court ruled against the Gujarat High Court in letting Essar Oil pay sales tax in deferred instalments.
"The company has availed of approximately INR 63 billion (approximately US$1.235 billion) of Sales Tax benefit which was to be paid in deferred instalments," Essar Energy revealed today.
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Today's court ruling means that the company will not be able to partake in this scheme going forward.
"The company will provide further information in the matter after studying the judgment passed by the Hon'ble Supreme Court," Essar said.
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