Cairn India shares gained as much as 8.2 per cent in the noon trade on Thursday on reports that the 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 1,400 crore.
According to reports, crude oil output would be expanded from 200,000 bopd (barrels of oil per day) to 300,000 bopd and natural gas carrying capacity from 6.3 mmscfd (million standard cubic feet per day) to 40 mmscfd.
At 11.55 am, the share price of the company was trading 7.90 per cent higher at Rs 140. It opened at Rs 132 and had touched a high and low of Rs 140.40 and Rs 132, in trade so far. The scrip jumped around 6 per cent in the previous two trading sessions.
On NSE, the scrip was trading 8.09 per cent higher at Rs 140.25. The NSE Nifty was up 1.33 per cent at 7,895.75.
According to Eikon data, the stock is trading at 5.9x on 12-month PE vs 9.7x of rivals.
The scrip closed 7.63 per cent higher at Rs 139.65.
(With inputs from agencies)