Cairn India proposes buyback of equity shares

Cairn India Ltd.

Cairn India Ltd., a subsidiary of Sesa Sterlite Ltd., has proposed a buyback of its equity shares from its existing shareholders, which has been approved by the company’s board of directors.

The buyback would be done from the open market through the stock exchanges, at a price not exceeding Rs. 335 per equity share, up to an aggregate amount not exceeding Rs. 5,725 crores. The maximum buyback price represents over 4% premium compared to the average of the weekly high and low of the company’s closing share price during the last two weeks.

With the above mentioned limits of the proposed buyback, the indicative maximum number of equity shares of Rs.10 each that can be bought back would be 170,895,522, resulting in the reduction of equity capital by approximately 8.9%.

The buyback comes on the backdrop of strong cash flows generated by the company, which is currently producing over 213,000 boepd and is on track to meet year-end targets of over 225,000 barrels of oil equivalent per day from all producing assets.

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