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Updated: 30/10/2009 | 12:00 AM IST
Good result outcome lifts Cairn India
Capital Market
Friday, October 30, 2009 (New Delhi)
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The result was announced after market trading hours on Thursday, 29 October 2009.

Meanwhile, the BSE Sensex was up 207.38 points, or 1.29%, to 16260.10.

On BSE, 1.44 lakh shares were traded in the counter as against an average daily volume of 6.72 lakh shares in the past one quarter.

The stock hit a high of Rs 276.80 and a low of Rs 268 so far during the day. The stock had hit a 52-week high of Rs 301.45 on 20 October 2009 and a 52-week low of Rs 107.30 on 29 October 2008.

The stock had outperformed the market over the past one month till 29 October 2009, rising 1.57% as compared to the Sensex 4.75% fall. It outperformed the market in past one quarter, gaining 13.29% as against 5.79% rise in the Sensex.

The large-cap private sector oil explorer has an equity capital of Rs 1896.67 crore. Face value per share is Rs 10 .

The current price of Rs 274.45 discounts the company's Q2 September 2009 consolidated EPS of Rs 2.48, by a PE multiple of 110.66.

On a standalone basis, the net profit declined 61.8% to Rs 31.09 crore on a 61.8% decline in sales to Rs 0.21 crore in Q2 September 2009 over Q2 September 2008.

Earlier this month, Malaysian oil giant Petronas acquired a further 2.3% stake in the oil exploration firm for $240 million. Petronas acquired the stake in Cairn India at Rs 260 per share. With the latest divestment, the holding of Cairn Energy in the Indian unit is down to 62.75% while that of the Malaysian firm increased to 14.94%.

In a press release issued to the BSE during market hours on 15 October 2009, Cairn India informed that the stake was being bought by Petronas International Corporation Ltd (PICL), the overseas arm of Petronas.

Under the terms of the deal, Cairn UK had also agreed to sell to PICL a 10% interest in its existing 6 operated blocks in offshore Greenland. PICL has an option to increase its interest to 20% in any development in these blocks, in return for payment of a further consideration.

On 14 October 2009, Cairn India said it secured a funding of $1.6 billion from domestic and overseas lenders for its Rajasthan oil field project.

Cairn India will also use the funds to repay its existing debt of around $850 million, the company said in a press release. The borrowings, with a tenure of six years, have been arranged through a combination of dollars and Indian rupees.

Besides securing $850 million from State Bank of India, the company will receive around $500 million from UK's Standard Chartered Bank another $250 million from the World Bank's International Finance Corporation (IFC).

Cairn India had on 29 August 2009 started crude oil production from Mangala oilfield in Rajasthan and is pumping some 10,000 barrels a day. The company had delivered first volumes of crude oil to the state-run MRPL on 8 October 2009.

Cairn India, a unit of London-based Cairn Energy, is into exploration and production of crude oil and natural gas in India.

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