Business Daily from THE HINDU group of publications
Friday, Nov 24, 2006
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Business Daily from THE HINDU group of publications Friday, Nov 24, 2006 ePaper |
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Petroleum Corporate - Private Placement Markets - IPOs Our Bureau
Cairn offering Subsequent to this placement, the net offer of shares to the public in Cairn India would be reduced from 538.47 million to 328.80 million shares. Cairn had originally planned to raise at least $1.8 billion through sale of 538.47 million shares of Cairn India through the proposed initial public offering.
New Delhi , Nov. 23 Cairn Energy Plc today announced that Rs 3,700 crore has been raised from pre-IPO private placement of Cairn India Ltd shares. The largest investor in the placement is a wholly owned subsidiary of Petronas, Malaysia. According to the Scottish major, ``The pre-flotation private placement closed on November 22 and 209.67 million Cairn India shares were placed at a price of Rs 176.48 per share, raising a total of Rs 3,700 crore.'' The placement at the said price implies that Cairn Energy's Indian business is valued at $6.92 billion (Rs 31,154 crore). The largest investor in the placing is Petronas, which has subscribed to 176.53 million shares, representing approximately 10 per cent of the post-floatation share capital, the company said in a statement. The balance of 33.14 million shares are being subscribed to by a combination of Indian and international institutional investors, including Videocon. Subsequent to this placement, the net offer of shares to the public in Cairn India would be reduced from 538.47 million to 328.80 million shares. "The placing is equivalent to 11.88 per cent of the issued share capital of Cairn India and, at the placing price, implies a Cairn India market capitalisation of approximately Rs 31,154 crore following successful completion of the floatation and excluding any exercise of the over-allotment option," the statement added. "The consequent implied valuation for Cairn Energy's current interest in Cairn India is $6.32 billion after taking into account the proportion of the gross proceeds to be retained by Cairn India, which is expected to be about $600 million," the statement said. Cairn had originally planned to raise at least $1.8 billion through sale of 538.47 million shares of Cairn India through the proposed initial public offering.
Key milestone
According to Cairn Energy, this is another key milestone that has been reached in connection with the preparations for the floatation of its Indian business, Cairn India, on the Indian stock market, in December. Post-IPO, Cairn Energy's stake in Cairn India would be 69.5 per cent. Cairn plans to invest $1.5 billion in its Rajasthan oilfield, from where it is expecting a peak output of 1,50,000 barrels per day from 2009. The company plans to split its business into two - Cairn India Ltd (which would hold the company's India interests including the Rajasthan oilfield, Cambay oil and gas fields and Ravva oil and gas field) and an exploration company with interests in exploration assets in Bangladesh, Nepal and adjoining parts of India.
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