Cairn India spikes 5% on share buyback plan

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Moneycontrol Bureau

Shares of Cairn India, a subsidiary of London-listed Vedanta Resources, surged 5 percent in early trade on Friday as the oil & gas explorer will consider share buyback on November 26.

Anil Agarwal-controlled Twin Star Mauritius Holdings holds 38.67 percent stake in the company as of September 2013 while his other companies viz Sesa Goa (now known as Sesa Sterlite after merging Sterlite with self) and Sesa Resources have 18.38 percent stake and 1.71 percent, respectively. Hence, total promoter shareholding stands at 58.8 percent.

Among public shareholders, Cairn Energy's unit Cairn UK Holdings, the earlier promoter and founder of Cairn India, has 10.27 percent stake in the company. LIC is the second largest shareholder with 8.78 percent stake.

Vedanta Resources through its subsidiaries had bought 58.5 percent stake for USD 8.4 billion in Cairn India in 2011. Former became promoter of the latter in FY12.

Cairn India, which was listed on the Bombay Stock Exchange and the National Stock Exchange of India in January 2007, has cash of USD 3.2 billion (more than Rs 20,000 crore) in its books.

Meanwhile, Cairn India's second quarter FY14 consolidated net profit grew 8 percent quarter-on-quarter (46 percent year-on-year) to Rs 3,385 crore due to rupee depreciation. Revenues rose 14 percent Q-o-Q (5 percent Y-o-Y) to Rs 4,650 crore in second quarter, helped by better price realisation and weak rupee.

At 09:53 hours IST, the stock was trading at Rs 327.30, up 3.20 percent on the BSE.