British oil firm Cairn Energy, with large drilling interests in India, said today it planned to raise fresh capital totalling about $165 million.
Cairn said in a statement that it intended issuing more than 6.5 million new shares equivalent to about 5 per cent of the group's existing capital.
Based on the value of Cairn's share price at the close of trade yesterday, the capital raised would total about 120 million pounds.
Following news of the planned capital-raising measure, Cairn's share price fell 5.35 percent to 1,770 pence in early London trade.
"Cairn Energy announced today its intention to place up to 65,42,270 new ordinary shares in the company, representing up to approximately five per cent of the existing issued ordinary share capital in the company, with both new and existing institutional investors," the group said in its statement.