cairn

Abt:
----
Cairn : Independent Oil and Gas exploration company. (capmart, Networth, Sharekhan, emkay,
Already listed on London Stock exchange.(capmart, Networth, emkay,
Mangala : Largest oil discovery in India.(capmart, Networth, Sharekhan, emkay

Offer details:
--------------
160-190:
issue date: 11th dec to 15th dec.
issue size: 60k mn.
Post issue promoter share : 69%
Lead Manager DSP Merrill Lynch Ltd, ABN AMRO Securities (India) Pvt Ltd and JM Morgan Stanley Pvt Ltd
Registrar Intime Spectrum Registry Limited


Competitors:
-----------
ONGC, RIL (Networth, Sharekhan, emkay

Management:
----------
good and experienced management. (Networth, Sharekhan, emkay


Fund Usage:
-----------
Develop Rajasthan block, additional drilling in Gujarat.(capmart, Networth, Sharekhan,
payments to the parent company (41%) (Networth, Sharekhan, emkay


Positives.
---------
Lower cost for the production.(capmart, Sharekhan,
Future exploration activities (Networth, Sharekhan,
proved track record and experienced management (Networth, Sharekhan, emkay
Pre-placement partners @ 176 : Videocon, Merill-lynch, Petronas, Citigroup, ABN Amro, (Sharekhan, emkay,
Increase in demand for natural gas and oil ( emkay,


Risks
-------
Production from Mangala from 2009.(capmart, Networth,
Unsatisfactory pipeline infrastructure.(capmart, Networth, Sharekhan,
No p/e for now.(capmart,
production volume stagnating in ravva (Networth,
Refiniries may look for discount. (Networth, Sharekhan,
Long gestation period. (Networth,
crude produced is waxy in nature and hence is at 10% discount (Networth, Sharekhan,
Sensitivity to oil price movement including govt regulation on oil pricing. (Sharekhan,


Valuations:
------------
No p/e for now.(capmart,
At double the valuations as ONGC, (Sharekhan,


reviews read:
---------------
cap mart: invest for long term only, (capmart,
networth : subscribe for long term perspective(
Emkay: Subscribe for long term as well as listing gains.

Verdict:
-------
Long term story,
No p/e,
past experiences with RPL, Petronet, Lanco don't expect listing gains.
Can even buy it at secondary instead of locking money.
No for IPO.