Cairn India Limited on Tuesday announced a proposal for buyback of its equity shares of Rs. 5725 crore at a price of Rs. 335 per share.

In a statement issued here late evening, the company said the Board of Directors in its meeting held on November 26 have approved a proposal for the buyback of shares of the company from its existing shareholders, other than the company's promoters, promoter group, persons in control and persons acting in concert.

It said the buyback will be done from the open market through the Stock Exchanges at a price not exceeding Rs. 335 per share, up to an aggregate amount not exceeding Rs. 5,725 crores. The maximum buyback price represents over 4 per cent 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 could be bought back would be 170,895,522, resulting in the reduction of equity capital by approximately 8.9 per cent.

Cairn India is currently producing over 213,000 barrels of oil equivalent per day and is on track to meet year-end target of over 225,000 barrels of oil equivalent per day from all producing assets.

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