Shirish Nadkarni
MUMBAI, Oct. 18 -- Cairn Energy PLC, Aberdeen, hopes to raise $2 billion through an initial public offering of its subsidiary Cairn India Ltd. Financial analysts say it could be the largest equity issue in the history of Indian capital markets.
Cairn India on Sept. 12 filed a draft prospective with the Securities and Exchange Board of India for the IPO, which would be held in December. The Red Herring Prospectus is expected be filed in November with the Registrar of Companies in Mumbai.
Pricing information has not yet been finalized, the company said.
Cairn expects the flotation to involve an offer of 538.47 million Cairn India shares, after which Cairn Energy will own a 69.5% share of Cairn India.
"Cairn India will use the money raised through the issue for acquiring the Indian assets of Cairn Energy," said Cairn India Chief Executive Rahul Dhir.
