Shares of Cairn India jumped around 2 percent intraday Tuesday on approval of its buyback plans. Vedanta Resources said it received 99.89 percentage of votes in favour of a proposed share buyback worth up to Rs 5725 crore by its oil and gas unit Cairn India.
London-listed Vedanta held an extraordinary shareholder meet on Monday to approve the buyback. Cairn India said the move would result in a maximum reduction of its equity capital by about 8.9 percent.
Meanwhile, the company is looking to pump in Rs 3,000 crore over the next three years to improve recovery from its prolific Rajasthan oilfield.
"We are launching the largest ever improved oil recovery (IOR) and enhanced oil recovery (EOR) schemes," Cairn India Chief Executive Officer P Elango said.
The schemes will help recover over 90 million barrels of oil in the Rajasthan block and sustain peak output for a longer time. Cairn India currently produces close to 1,85,000 barrels of oil per day from the Rajasthan block and will exit the financial year with over 2,00,000 bpd output, he said.
Cairn India plans to drill 100 oil wells to monetise new reserves at the Rajasthan block, whose resource potential is 7.3 billion barrels of oil equivalent. The explorer is also evaluating options to monetise the discovered gas at its Sri Lankan block, Elango said.
At 11:38 hrs, the stock was quoting at Rs 329.10, up Rs 5.05, or 1.56 percent on the BSE.
(With inputs from agencies)
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