Cairn Energy plans Indian IPO; submits Red Herring to SEBI

New Delhi, Oct 12 (UNI) UK-based Cairn Energy Plc today filed its Draft Red Herring Prospectus with Securities and Exchange Board of India (SEBI) to enter the Indian capital market in December with about 53.80 crore shares.

The company also announced that ''significant progress has been made in connection with the preparations for the start of its Indian business, Cairn India Ltd which will be listed on the Bombay Stock Exchange and National Stock Exchange.'' Cairn first raised the possibility of a partial flotation of its Indian oil and gas assets -- which account for over 90 per cent of the company's value -- in March.

The shares will be offered at a premium to be decided through a 100 per cent book-building process. Cairn India may also grant an over-allotment option in accordance with SEBI guidelines.

Cairn, which is to seek shareholder approval for its plan at an extraordinary general meeting next month, said the offer price for the flotation would be determined after a book-building exercise.

It would own a 69.5 per cent holding in Cairn India following the IPO, excluding the case of over-allotment.

Of the issue, at least 60 per cent will be allotted to qualified institutional buyers on a proportionate basis, not less than 10 per cent will be available for allocation to non-institutional investors on a pro-rata basis and not less than 30 per cent will be allotted to retail bidders.

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