IFC to pick up Cairn India stake for Rs 200 cr
International Finance Corporation (IFC) has shown interest in picking up an undisclosed stake in Cairn India (CIL), a wholly-owned subsidery of the UK-based Cairn Energy Plc for close to Rs 200 crore.
By TNN |
MUMBAI: International Finance Corporation (IFC) has shown interest in picking up an undisclosed stake in Cairn India (CIL), a wholly-owned subsidery of the UK-based Cairn Energy Plc for close to Rs 200 crore.
Cairn is planning to tap the Indian capital market in December this year. The company is raising resources primarily to develop the Rajasthan oilfields where it claims to have discovered over 3bn barrels of oil. Interestingly, IFC is also among the consortium of 14 domestic and international financial institutions, with whom Cairn has tied up for debts of $1bn.
Confirming the development, Cairn’s official spokesperson told ET, “We have received an expression of interest from IFC to pick up equity stake in our company. They will pick up ordinary shares valued $45m.”
However, he refused to divulge the stake that Cairn would divest. Cairn is likely to file the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) by this weekend.
Post-IPO, Cairn Energy Plc will hold the majority stake in CIL, while the remaining will be offered to banks and financial institutions besides the Indian public.
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The possibility of offloading stake to a domestic or an international oil firm is also not ruled out. IFC officials could not be reached for their comments; however, an IFC note on its website says, “IFC is considering an equity investment in Cairn India in the form of ordinary shares of up to $45 million.” Download
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