Sebi expected to clear IPO with Rs 160-190 price band
NEW DELHI: With an expected price band of Rs 160-190, Cairn India - the first private sector exploration and production company to hit the Indian primary markets in a long time - will gatecrash the Top 25 club in terms of market capitalisation as soon as it is listed. At the pre-placement price of Rs 176-and-odd, the company is already valued at over Rs 31,000 crore.
Cairn India, a subsidiary of Edinburgh (UK)-based Cairn Energy plc, expects to get the nod for its initial public offering (IPO) from the Securities and Exchange Board of India (Sebi) and the registrar of companies on Monday (today). The public issue will be priced through a book-building process.
Last week, the company announced a private placement of 10% of its equity with Malaysian major Petronas at Rs 176.48 a share.
The 10% works out to 17.65 crore shares. Another 1.88% (3.32 crore shares) was offloaded to a combination of Indian and international investors, including Videocon Industries, the company’s partner in the already producing Ravva fields.
With 20.97 crore shares already placed with private equity investors, what remains for the public is 32.87 crore shares out of the total of 53.85 crore shares the company had put on offer.
At the pre-IPO placement price, the company is valued at around Rs 31,157 crore, which would place it just below Tata Motors at No 23 in the market-cap sweepstakes. Tata Motors had a market-cap of Rs 31,800 crore as on Friday, November 24.
Having already raised around Rs 3,700 crore through pre-IPO placements, the company’s issue to the public is expected to raise an additional Rs 5,800 crore. After getting it’s nod from Sebi, Cairn will start its roadshows by mid-week.
Slick oil
Entry of Malaysian Petronas at Rs 176.48 a share seen as a plus
Equity on public offer pared to 33 crore after pre-IPO placements
Company is expected to begin roadshows in India this week
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