Cairn India said that the net proceeds of the private placement will be used to fund capital expenditure and for general corporate purposes.
The board of directors of Cairn India (CIL) has approved the placement through a preferential issue of 63.3 million equity shares of INR10 each fully paid up equity shares of the company at a price of INR224.30 per share to Petronas.
The board also approved the issue of 49.7 million equity shares of INR10 each fully paid up equity shares of the company at a price of INR224.30 per share to Orient Global Tamarind Fund.
These shares will be locked in for a period of one year from the date of allotment. Following the private placement, Petronas will own approximately 12.7% and Orient Global Tamarind Fund will own approximately 2.6% of the enlarged equity share capital of CIL.
Rahul Dhir, CEO of Cairn India, said: Cairn India is entering an exciting period of growth. 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 India’s business.
