Cairn India fell 2.66% at Rs 317 at 13:52 IST on BSE after the company announced that Rahul Dhir will step down as Managing Director and Chief Executive Officer of the company with effect from 31 August 2012 to pursue his entrepreneurial interests.
The announcement was made after market hours on Thursday, 8 August 2012.
Meanwhile, the BSE Sensex was down 35.47 points, or 0.20%, to 17,565.09.
On BSE, 5.70 lakh shares were traded in the counter as against an average daily volume of 11.94 lakh shares in the past one quarter.
The stock hit a high of Rs 321.85 and a low of Rs 313.60 so far during the day. The stock had hit a record high of Rs 400.95 on 22 February 2012. The stock had hit a 52-week low of Rs 250 on 26 August 2011.
The stock had outperformed the market over the past one month until 8 August 2012, rising 3.30% compared with the Sensex's 0.45% rise. The scrip had, however, underperformed the market in past one quarter, gaining 3.40% as against 6.37% rise in the Sensex.
The large-cap company has an equity capital of Rs 1907.91 crore. Face value per share is Rs 10.
Cairn India said that the search for Mr. Dhir's successor is underway and an announcement is expected soon, Cairn India said in a statement. During this intervening period, the board has appointed Mr. P. Elango, Director - Strategy and Business Services and a member of Cairn India's Executive Committee, as the Interim CEO. Mr. Elango, an experienced oil & gas veteran has been with Cairn for over 15 years and has worked competently alongside Mr. Dhir for the past six years.
On the eve of this announcement, Mr Dhir said, "It's been a privilege to be part of Cairn India's remarkable growth story over the past six years. We have achieved all major milestones set out at the time of the IPO. With the completion of Vedanta's acquisition, Cairn India's exceptional organization and unique asset base are well placed to continue to deliver sustainable growth and value for our Nation and all our stakeholders. This is the right transition point for me to pursue my entrepreneurial interests. I take this opportunity to thank all my colleagues at Cairn India, and our Board for their contribution and support in creating this amazing company."
Mr. Navin Agarwal, Chairman of Cairn India, said: "The success of Cairn India, under Rahul's leadership has been achieved through building a globally competitive team, ensuring a strong focus on disciplined execution, sustaining low cost and safe operations and innovative application of technology. These strategic pillars will continue to remain core to Cairn India's operating philosophy as it enters the next phase of its growth. We thank Rahul for his valuable contribution and wish him success in his future endeavours. Cairn India is well poised to continue its focus on exploration, and on augmenting our current production from Rajasthan and focus on growth in India and beyond."
Cairn India's consolidated net profit jumped 40.3% to Rs 3825.74 crore on 19.6% growth in net sales to Rs 4440.03 crore in Q1 June 2012 over Q1 June 2011.
Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both PSU and private buyers
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