Cairn India Limited Board Proposes Buyback of Equity Shares

  Cairn India Limited Board Proposes Buyback of Equity Shares

Business Wire

DELHI, India -- November 28, 2013

Cairn India Limited ("CIL" or "Company"), a subsidiary of Sesa Sterlite
Limited, announces the proposal for Buyback of its Equity Shares.

The Board of Directors of the Company in its meeting held on 26 November, 2013
has approved a proposal for the Buyback of Equity Shares of the Company from
its existing shareholders, other than the Company's promoters, promoter group,
persons in control and persons acting in concert.

The Buyback would be done from the open market through the Stock Exchanges, at
a price not exceeding Rs. 335 per Equity Share, up to an aggregate amount not
exceeding Rs. 5,725 crores.

The maximum Buyback price represents over 4% premium compared to the average
of the weekly high and low of the closing share price of the Company during
the last two weeks.

With the above mentioned limits of the proposed Buyback, the Indicative
maximum number of Equity Shares of Rs.10 each that can be bought back would be
170,895,522, resulting in the reduction of Equity Capital by approximately
8.9%.

The Buyback comes on the backdrop of strong cash flows generated by the
Company through its operational excellence and the World class asset base. The
Company is currently producing over 213,000 boepd and is on track to meet
year-end target of over 225,000 barrels of oil equivalent per day from all
producing assets.

This proposal is a shareholder reward mechanism through decrease in the equity
share capital and a consequent increase in the Earnings per Share of the
Company. The Company believes that the Buyback will improve shareholder
returns while maintaining the current dividend payout ratio as per the
approved policy.

The proposed Buyback is subject to approval of the shareholders of the Company
and other regulatory approvals, as may be required. The Company will be
seeking approval of the shareholders of the Company by way of a special
resolution to be passed through postal ballot as per applicable provisions of
the Companies Act, the Securities and Exchange Board of India (Buy-Back of
Securities) Regulations, 1998 and other applicable provisions.

Post receipt of approval of the shareholders and such other sanctions and
approvals as may be required the Company is expected to initiate the Buyback
process in January, 2014.

Mr. Sudhir Mathur, CFO, Cairn India said:

“We are happy to announce yet another shareholder reward mechanism in addition
to the interim dividend declared last month. This comes on the back of strong
operational excellence and robust financials.

The company continues to work on its US$ 3 billion capex program over next
three years till FY16 and is well placed to develop its current asset base and
monetize the existing exploration opportunities with the objective of
strengthening its E&P portfolio.”

Disclaimer

This material contains forward-looking statements regarding Cairn India and
its affiliates, our corporate plans, future financial condition, future
results of operations, future business plans and strategies. All such forward-
looking statements are based on our management's assumptions and beliefs in
the light of information available to them at this time. These forward-looking
statements are by their nature subject to significant risks and uncertainties;
and actual results, performance and achievements may be materially different
from those expressed in such statements. Factors that may cause actual
results, performance or achievements to differ from expectations include, but
are not limited to, regulatory changes, future levels of industry product
supply, demand and pricing, weather and weather related impacts, wars and acts
of terrorism, development and use of technology, acts of competitors and other
changes to business conditions. Cairn India undertakes no obligation to revise
any such forward-looking statements to reflect any changes in Cairn India's
expectations with regard thereto or any change in circumstances or events
after the date hereof. Unless otherwise stated the reserves and resource
numbers within this document represent the views of Cairn India and do not
represent the views of any other party, including the Government of India, the
Directorate General of Hydrocarbons or any of Cairn India’s joint venture
partner.

Contact:

Cairn India Limited
Investor Relations
Nidhi Aggarwal, +91 124 476 4308
Head - Investor Relations
cilir@cairnindia.com
Mobile: +91 98101 97755
Media Relations
Dr Sunil Bharati, +91 124 459 3138
Head, Corporate Affairs & Communications
cilmedia@cairnindia.com
spokesperson@cairnindia.com
Mobile: +91 99104 86055
 
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