Cairn India shares drop after Cairn Energy sells shares

Shares of Cairn India dropped more than 6% after two sources familiar with the matter told Reuters its UK parent sold part of its stake to a clutch of institutional investors at a discount.

Cairn sold about 66.8 million shares in the Indian unit, offering the shares at Rs 307.40 to Rs 317.50 according to a term sheet seen by Reuters on Thursday, below its Rs 327.35 closing price that day. Cairn India shares were last down 6.4% at Rs 306.40. Citigroup was the book runner to the transaction, the sources said. On Thursday, sources have told Reuters that the British oil explorer plans to sell about 3.5% of its holding in the company.