In a recent official announcement, the Cairn India has stated that it is planning to raise its fund by a huge around Rs 2,534.60 crore ($625 million) through a private placement with the Petronas and Orient Global Tamarind Fund, very soon. The company officials have informed that the company has already signed agreements with the investors and the investors have also agreed for purchasing a total of 113 million shares of Cairn India at a rate of Rs 224.30 per share. The officials added that the company is thinking of utilizing the amount raised through this private placement, for funding its capital expenditure and also for the general corporate purposes.
The company has released the official statement on Monday in order to inform the Bombay Stock Exchange about the development and said that the board of directors of Cairn India has also approved the move. The statement informed that the board has approved the placement through a preferential issue of 63.30 million equity shares of Rs 10 each at a price of Rs 224.30 per share to the Petronas. The statement also stated that the company will issue and allot a number of 49.70 million equity shares at the same price to the Orient Global Tamarind Fund.
While commenting on the companys plans further, the Chief Executive Officer of Cairn India, Mr. Rahul Dhir said, "The company is confident of producing commercial oil from Rajasthan in 2009. The private placement will 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 Indias business". He added that the shares are going to be locked-in for one year from the date of allotment and the Petronas will be holding about 12.7% of the equity share capital of Cairn India, after the private placement. The share of the Orient Global Tamarind Fund will also be increased to around 2.6% after the placement.
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| Posted : 3/18/2008 |
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