Cairn India entering capital market
Indore, Dec 5 (UNI) Cairn India Ltd (CIL), a crude oil and natural gas exploration company, is entering the capital market with a public issue of 32,87,99,675 equity shares.
''Cairn has a long history in India. Our biggest project to date is in Rajasthan where we are ready to start the construction phase of Mangala in 2007 so that large-scale production can start in 2009,'' CIL Head (Commercial and New Business) Tor McCaul told reporters here today while announcing details of the initial public offer (IPO).
''Our total operated production in India is 87,000 barrels of oil equivalent per day, which is expected to go up to approximately 2,00,000 boe by the end of the decade,'' he claimed.
The construction and developement work for Rajasthan is being part funded by the proposed IPO. The price band for the issue has been fixed between Rs 160 and Rs 190 per share. Gross proceeds from the IPO would help CIL raise a minimum of Rs 86.16 billion at the lower end of the price band and a maximum of Rs 99.47 billion at the upper end.
The issue opens for subscription or bids on December 11 and closes on December 15. Mr McCaul said that out of the total offer, the company has completed a pre-IPO placement of 209.67 million equity shares, thus the net offer to public would stand reduced to 328.80 million shares along with the greenshoe option.
Out of the offer to the public, the company proposes to reserve 60 per cent for allotment to qualified institutional bidders, of which 5 per cent will be reserved for allotment to mutual funds.
Further, 10 per cent is being reserved for allotment to non-institutional investors and the balance 30 per cent will be made available for allotment to retail investors on a proportionate basis.
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