Cairn Energy to launch IPO

By agencies   |   Thursday, 17 August 2006, 19:30 IST
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NEW DELHI: British-major Cairn Energy's initial public offering for its India operations is likely to open before the end of this financial year. Cairn has already announced plans to spend $1 billion to help drive exploration plans for its Rajasthan block, which has 3.5 billion barrels of oil in place as per latest estimates. The company holds 70 per cent share in the Mangala, Aishwarya, Saraswati and Raageshwari fields and Oil and Natural Gas Corporation (ONGC) holds 30 per cent stake. The Indian assets have polished the company’s blue-chip grade in the FTSE 100 in London. However, how much of the company’s equity would be offered to investors is unknown. Rahul Dhir, CEO Cairn Energy India, said,” We recently tied up a $1 billion credit from a group of banks in London. Besides, the cash flows from our fields are strong. But if equity money is available, we would not draw down from the credit lines.”

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