Cairn Energy, UK today said it will raise at least $1.8 billion from the proposed initial public offering (IPO) of its Indian operations in December.Part of the proceeds, which would be $1.9 billion if an over-allotment option is exercised in full, would be used to fund its ongoing business while the balance would be returned to shareholders, Cairn said in a statement.Of the total funds garnered from the sale of 538.47 million shares of Cairn India (CIL), the Indian subsidiary would retain only Rs 2,700 crore ($600 million) and the remaining funds may go to shareholders of the UK firm.Cairn Energy plans to split its business into two - Cairn India (which would hold the company's India interests including the Rajasthan oilfield, Cambay oil and gas fields and Ravva oil and gas field) and an as yet unnamed exploration company with interests in exploration assets in Bangladesh, Nepal and adjoining parts of India.An IPO of the Indian business through the book building route is planned in December. Post-IPO, Cairn Energy's stake in CIL would be 69.5%."Part of the proceeds (will) be used to fund the groups ongoing business (and) balance (will) be returned to shareholders," the statement said.Cairn plans to hold an extraordinary shareholder meeting on November 17 to vote on the planned flotation."A successful flotation is in the best strategic interests of the Cairn India business and will provide an opportunity to realise value for shareholders," Bill Gammell, chief executive of Cairn Energy, said.
