Cairn Energy says Indian IPO on track for Dec

LONDON, Oct 12 (Reuters) British oil explorer Cairn Energy Plc said on Thursday it still planned a market flotation for shares in its Indian operations in December, assuming approvals, listing requirements, and favourable market conditions.

The Edinburgh-based firm said in a statement it would be offering around 538 million shares in the new Cairn India arm and that it would still own a majority 69.5 percent stake in the company when the placing is complete.

Cairn, which is to seek shareholder approval for its plan at an extraordinary general meeting next month, said the offer price for the flotation on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) would be determined after a book-building exercise.

Cairn first raised the possibility of a partial flotation of its Indian oil and gas assets -- which account for over 90 percent of the company's value -- in March.

Its shares in London were 0.4 percent weaker at 1,880 pence by 1133 GMT, valuing the business at more than 3 billion pounds (.57 billion).

REUTERS PKS VV1718