Cairn India seeks nod to raise $1bn

Cairn India is seeking shareholders' approval to raise $1 billion, with a greenshoe option of 15%, via FCCBs/ADRs/GDRs.

The shareholders will vote on the proposal at the forthcoming AGM to be held on September 20 in Mumbai.

According to the notice issued to shareholders, the company is planning to raise up to $1.3 billion, primarily to fund the Rajasthan development, laying pipeline infrastructure to evacuate oil and exploration of various other blocks in India. The board of directors, at its meeting held on July 30, 2007, approved a proposal to raise up to Rs 6,000 crore via debt/equity.

The company, yesterday, announced that the government had given it permission to buy land for an oil pipeline in Rajasthan.