Overhang of Cairn Plc will prevent upside on the stock: Prashasta Seth

In a chat with ET Now, Prashasta Seth, Senior Fund Manager, IIFL Wealth, shares his views on Cairn India Ltd.
ET Now: The board of Cairn India will meet on 26th to consider a buyback is there merit in revisiting Cairn India as a stock because if the promoters are inclined to increase their stake by open market operation that clearly means that they find value in that stock?

Prashasta Seth: Obviously, it is the right thing, it is a step in the right direction but my personal sense is that till the point there is an overhang of Cairn Plc shares on the stock I would find it very difficult for the stock to do extremely well. So, there is a merit but till the overhang of Cairn Plc is there that upside will be fairly limited. Secondly, a bit of a concern is on the production profile from the existing fields not getting that kind of comfort that production decline or production is going to move up which is another factor that one needs to be slightly cognisant of but obviously the step is in the right direction.