Shares of Oil India Ltd fell as much as 2.9 per cent to Rs 199.2, their lowest in 10 days as Moody's had said on Friday that the company's proposal to buy back shares worth around Rs 1,086 crore ($153.80 million) is credit negative.
Moody's expects the company's net borrowings to increase to Rs 11,000 crore by March 2019 from Rs 9,000 crore as of March 2018. Net borrowings increase is also driven by expectations that the company will continue to pay high shareholder dividends and have higher capital spending in FY ending March 2019.
More than 1.2 million shares traded vs 30-day average of 892,221 shares. Oil India's estimated PE is at 7.17 vs sector average of 8.78.