The Hindu Business Line : Cairn India IPO price fixed at Rs 160/share

Cairn Energy PLC today announced the pricing for the flotation of its Indian business, Cairn India Ltd on the Bombay Stock Exchange and the National Stock Exchange of India.

A company statement said that following a book building exercise, based on an offering document, Cairn has agreed and Cairn India has set an offer price for the flotation of Rs 160 per Cairn India share.

Going by the issue price of Rs 160 per share, Cairn India market capitalisation would be approximately Rs 28,245 crore excluding any exercise of the over-allotment option. This capitalistaion would include approximately $600 million of the gross proceeds to be retained by Cairn India.

Following the flotation, Cairn Energy will own a 69.5 per cent holding in Cairn India excluding any exercise of the over-allotment option.

Cairn India has raised Rs 8,616 crore from its IPO. After taking into account the proportion of the gross proceeds to be retained by Cairn India, expected to be approximately Rs 2,681 crore, the gross proceeds expected to be received by Cairn Energy excluding any exercise of the over-allotment option would be approximately Rs 5,935 crore.

A final offering document is expected to be published on December 19 the statement said adding that allotment of Cairn India shares is expected to take place on December 29 with trading expected to commence in early January 2007.

Further announcements relating to the prospectus, allotment and commencement of trading of Cairn India shares will be made in due course, the statement said.