Published on Fri, Nov 24, 2006 at 08:51 | Source : Moneycontrol.com
Updated at Fri, Nov 24, 2006 at 15:01
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Petronas buys 10% in Cairn India
Malaysian oil giant Petronas has bought 10% in Cairn India as part of Cairn India's pre-IPO placement. The exercise has got Cairn India USD 822 million, reports CNBC-TV18.
Malaysian oil giant Petronas has bought 10% in Cairn India, as part of Cairn India's pre-IPO placement. The exercise has got Cairn India USD 822 million, reports CNBC-TV18.
Malaysian oil and gas company Petronas has entered India's exploration and production market. It has paid USD 700 million for 10% in Cairn India. In a pre-IPO sale, Cairn India placed 11.88% of its stake, which fetched it USD 822 million. It also sold to Videocon and Blackrock. This deal values Cairn India at about USD 7 billion and paves the way for its IPO next month.
This placement will reduce the IPO size to Rs 5,800 crore at the placement price. Cairn India will now float just over 21% of its equity through the IPO. Cairn India will retain USD 600 million and USD 1500 million will be used to buy Cairn Energy's Indian assets.
Cairn India must allot the shares by the first week of February for the deal to go through. It's now awaiting Sebi clearance of its IPO prospectus and will float a USD 1.2 billion IPO in December.
This placement will reduce the IPO size to Rs 5,800 crore at the placement price. Cairn India will now float just over 21% of its equity through the IPO. Cairn India will retain USD 600 million and USD 1500 million will be used to buy Cairn Energy's Indian assets. 
