Carins arrange private placement of USD 625 m

Mumbai, Mar 17 (UNI) Carins India has arranged a private placement of approximately Rs 253.46 Crore (USD 625 m) after entering an agreement with Petronas and Orient Global Tamarind Fund Private Limited further to which the investors have agreed to purchase a total of 113 million shares of Cairn India at Rs 224.30 per share.

The net proceeds of the private placement would be used to fund capital expenditure and for general corporate purposes, the Company said in a release after the Board approved the placement through a preferential issue of 63,300,000 Equity shares of Rs 10 each fully paid up equity shares of the Company at a price of Rs 224.30 per share to Petronas and 49,700,000 Equity shares of Rs 10 each fully paid up equity shares of the Company at a price of Rs 224.30 per share to Orient Global Tamarind Fund Private Limited.

These shares would be locked in for a period of one year from the date of allotment.

Following the private placement, Petronas would own approximately 12.7 per cent, of the equity share capital of CIL as enlarged by the private placement and Orient Global Tamarind Fund Private Limited will own approximately 2.6 per cent of the enlarged equity share capital of CIL.

A meeting of the equity shareholders of the Company is proposed to be convened on April 16 for obtaining their approval to the afore-said proposal.

The issue price represents a 0.46 per cent premium to the average closing price on the National Stock Exchange of the last two trading days prior to the announcement.

Cairn India CEO Rahul Dhir said, the Company was confident of producing first commercial oil from Rajasthan in 2009. The private placement would help the Company towards meeting its investment plans and provide greater financial and operational flexibility.

''We are delighted to have investors like Petronas and Orient Global show their commitment to subscribe to Cairn India's business'' he added.

UNI VK GR1157