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Last Updated: Monday, 18 December 2006, 12:15 GMT
Cairn India float to raise 666m
Oil pump
Cairn is expecting strong growth in India in the next five years
British oil firm Cairn Energy has said it expects to raise 666m ($1.3bn) from the flotation of its Indian business.

Shares in Cairn India have been priced at 183 pence per share ahead of their listing on the Bombay Stock Exchange and National Stock Exchange next year.

The listing will give Cairn India an initial market value of 3.2bn.

Cairn India has profited from its focus on the oil-rich Rajasthan region and is expecting a five-fold rise in output from there by the end of the decade.

'Natural evolution'

Cairn revealed plans to list its Indian business earlier this year as a way of funding further exploration in India and rewarding shareholders.

Cairn will own 69% of the new business, which employs more than 400 staff, following its flotation in January.

Cairn India is poised to play an integral part in meeting India's growing energy demand
Sir Bill Gammell, Cairn Energy chief executive

Cairn said the new business was ideally placed to benefit from India's continued rapid rate of economic growth and its consequent strong demand for energy.

"This has been one of the biggest IPOs carried out in the Indian markets and is a natural evolution for Cairn, building on more than 10 years of success in South Asia," said Sir Bill Gammell, its chief executive.

"Cairn India is poised to play an integral part in meeting India's growing energy demand."

Cairn started producing oil in India in 1993 and concentrated on the region in the late 1990s at a time when larger oil companies looked elsewhere for new discoveries.

Its Indian business made a 26m profit last year on sales of 89m.




SEE ALSO
Cairn delays India oilfield start
05 Sep 06 |  Business
Cairn secures big Indian oil deal
03 Jul 06 |  Business
Cairn ready to float Indian arm
14 Mar 06 |  Business

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