Cairn India not to raise further equity says chairman

Cairn India not to raise further equity says chairman
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First Published: Fri, Sep 21 2007. 11 06 AM IST
Updated: Fri, Sep 21 2007. 11 06 AM IST
Mumbai, 21 September Cairn India Ltd, the Indian unit of Edinburgh-based Cairn Energy Plc , has no plans to raise additional equity in India and has funds to meet its capital requirements, a top official said.
“Absolutely, not. We have no plans whatsoever,” Cairn India chairman Bill Gammell told reporters on Thursday (20 September) after the company’s first meeting of shareholders.
He was responding to a query after the company gained shareholder approval to raise up to $1 billion overseas, through an offering of convertibles or shares.
“This is a mere enabling resolution. We are completely fully funded and there is no plan to raise any money or even a rights issue,” Gammell said.
Cairn India is developing an oil field in the western state of Rajasthan from which it has targeted peak production of 150,000 barrels per day.
The field is expected to produce oil for 25 years from 2009.
Gammell said the company would fund the Rajasthan project through internal accruals, proceeds from its initial public offering and an unused loan facility.
The company’s chief financial officer was quoted by local media as saying Cairn India had $600 million in cash and $850 million in debt.
It raised $1.18 billion through the IPO in January.
Earlier in his speech, Gammell said Cairn had won approval for a pipeline to transport its crude.
The firm has said it is confident of getting government permission to recover the cost of the $780 million project from the field’s revenue.
State-run explorer Oil and Natural Gas Corp partners Cairn in the Rajasthan block.
Cairn Energy holds a 69% interest in the exploration and production firm while Malaysia’s Petronas owns a 10% stake.
Shares in the company ended at a record, up nearly 5% at Rs174.80, above its listing price of Rs160.
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First Published: Fri, Sep 21 2007. 11 06 AM IST