Cairn Energy PLC announces flotation of India operations

Mumbai, Dec 17 (UNI) Cairn Energy PLC announced the pricing for the flotation of its Indian Business, Cairn India Limited on the Bombay Stock Exchange (BSE) and National Stock Exchange of India Limited (NSE).

According to a company statement issued here today, Cairn India has set an offer price for the flotation of Rs 160 per Cairn India share. This implies a Cairn India market capitalisation of approximately Rs 282.45 billion excluding any exercise of the over-allotment option.

The flotation will involve the issue of approximately 538.47 million Cairn India shares, excluding any exercise of the over-allotment option, comprising approximately 209.67 million shares priced at Rs 160 per share pursuant to the pre-flotation placement, and approximately 328.80 million shares priced at Rs 160 per share pursuant to the offer to the public.

Based on the price above, gross proceeds of the flotation would be Rs 86.16 billion. After taking into account the proportion of the gross proceeds to be retained by Cairn India, expected to be approximately Rs 26.81 billion.

A final offering document is expected to be published on 19 December 2006. Allotment of Ciarn India shares is expected to take place on 29 December 2006 with trading of Cairn India shares expected to commence in early January 2007, added the release.

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