Cairn India plans to raise as much as Rs10,000 crore (approximately
$ 2 billion) through its initial public offering mostly
likely in December this year.
to its draft Red Herring prospectus filed with SEBI, the
Scotland-based Cairn Energy plc's Indian arm, has proposed
to offer 538.47 million new equity share of Rs10 each
for cash at a premium to be decided by a 100-per cent
company may also grant an over-allotment option in accordance
with Sebi guidelines. Cairn Energy plc will own a 69.5-per
cent in Cairn India following the flotation (excluding
any exercise of the over-allotment option).
India proposes to allot 60 per cent of the IPO to qualified
institutional buyers on a proportionate basis; 10 per
on a proportionate basis to non-institutional investors
and 30 per cent to retail bidders on a proportionate basis.
pricing is proposed to be in the range of Rs180 to Rs200
IPO realization would be used to fund the growth of Cairn
India and to acquire assets from the parent company. Cairn
India will focus on exploration, development and production
while the UK-based unit will concentrate on exploration.
expects increased energy consumption in India, which is
the world's second-fastest-growing major economy.
shares are proposed to be liosted on the BSE and the NSE.