Stock market analyst Ashwani Gujral has maintained ‘Buy’ rating on Essar Oil to achieve a target between Rs 155 – Rs 165 in the coming days.

According to Mr. Gujral, interested traders can buy the stock with a strict stop loss of Rs 124.

Today, the shares of the company opened at Rs 139.90 as against its last closure of Rs 132.55 on Wednesday (July 15) on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 246.50 and a low of Rs 54.10 on BSE.

Essar Oil, on July 15, has mandated Citi, JP Morgan and UBS to lift around $200-250 million via issue of fresh equity shares.

This is the initial part of the $2 billion that Essar Oil is planning to raise to meet up its growth plans.

The three banking institutions are weighing the verdict of issuing fresh equity on Indian and foreign stock markets to lift funds.

Options including QIP and FCCB are also being considered.

It is discovered that Essar Oil would begin hosting road shows for investors in July’s last week, after the declaration of June quarter results, which are expected on July 20.

Essar Oil, on July 11, said that it is going to cut petrol and diesel rates in the range of Rs 0.50 to Rs 2.50 per liter from July 16, 2009, a move that will bring its costs at par with that of public sector companies.

Essar Oil, in June 2009, said it would raise around Rs 9,606 crore via different domestic as well as international fund raising routes.

Essar Oil would raise funds through ADRs, GDRs and FCCBs.

In 2009-10, Essar Oil`s investment is expected to rise to $70 million in exploration and production (E&P) if a long-pending production sharing contract (PSC) with the government for the Ratna and R-Series fields is concluded early.