CIL enters capital market, issue opens on Dec 11
Hyderabad, Dec 5: Caim India Limited(CIL), a crude oil and natural gas exploration and production company, is entering the capital market with a public issue of 328,799,675 equity shares of Rs ten for cash at a premium to be decided through a 100 per cent book-building process.
Talking to newspersons here today CIL Director Exploration Richard Hieathan and P Elango, Director, Strategic Planning said the three rigs were being procured to start the construction phase of its Mangala development in 2007 to enable the production to start in 2009.
They said ''Our total operated production in India is currently 87,000 barrels of oil equivalent(BOE) per day which is expected to go up to approximately 200,000 BOE by the end of the decade.'' They said the company also plans additional drilling in Ravva off Andhra Pradesh coast and Cambay off the coast in Gujarat.
The construction and development work for Rajasthan is partly being 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 Cairn Indian Limited 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 of the band.
Issue opens for subscription/bids on December 11, 2006 and closes on December 15, 2006.
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 equity shares along with greenshoe option.
Out of the offer to public, the company proposes to reserve 60 per cent for allotment to qualified institutional bidders, of which five per cent will be reserved for allotment to mutual funds.
Further, 10 per cent was being reserved for allotment to non-institutional investors and the balance 30 per cent will be made for allotment to retail investors on a proportionate basis.