Cairn bids for hydrocarbon blocks off Kerala, TN coasts

Kochi, Dec 7 (UNI) Cairn India Limited, a crude oil and natural gas exploration and production company, has bid alongwith Oil and Natural Gas Corporation (ONGC) for two offshore hydrocarbon blocks off Kerala and Tamil Nadu coasts.

Speaking on the sidelines of the launch of a roadshow of Cairn's initial public offering (IPO) of equity shares here today, its Corporate Communication Director David Nisbet said the hydrocarbon block was 100 kms off the Kerala coast and the block off Tamil Nadu coast was a shallow water project.

He said the potential of the blocks would be ascertained only after an initial survey.

The states, especially Kerala, would get an impetus for development with these projects, he noted.

With the IPO, Cairn India Limited, promoted by UK-based Cairn Energy PLC, is entering the capital market with an issue of 328,799,675 equity shares of Rs 10 each at a premium to be decided through 100 per cent book-building process.

The price band for the issue was fixed between Rs 160 and 190 per share.

Strategy Director P Elango said the construction and development works in Rajasthan was partly funded by the proposed IPO.

The gross proceeds from the IPO would help the company to 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, he added.

Issue opens for subscription on December 11 and closes on December 15.

UNI MA JJ 1549