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Media Releases
2006

20 December
2006

IPO of Cairn India

UK law firm, Shepherd and Wedderburn LLP, has crowned a year of outstanding deals by acting as lead lawyers to FTSE 100 client Cairn Energy plc in the proposed approximately US$ 6.3 billion* (implied market cap.) Indian IPO of its subsidiary, Cairn India Limited, which was priced on 16 December 2006. 

The team was led by corporate partner Paul Hally.  Cairn India is expected to float on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited at an implied market cap of US$ 6.32 billion, with gross proceeds expected to be at least Rs 86.16 billion (US$ 1.93 billion).  Cairn India is being represented by an integrated Slaughter and May/Davis Polk and Wardwell team. Amarchand Mangaldas is providing Indian law advice on the IPO.

Paul Hally said:  “What Cairn has been able to achieve since announcing the intention to float in March is truly unique and remarkable - few outside the company will realise the scale of that achievement.  It has been a tremendous deal to work on over the last nine months and has been a real team effort between us and Cairn and its other advisers.  Our 20+ strong legal team, which included my partners Marian Glen and Stephen Trombala, have learned a great deal more about the Indian market and doing business there." 

Sir Bill Gammell, chief executive of Cairn Energy plc, said:  “Shepherd and Wedderburn really picked up the ball and ran for us on this one as our lead legal advisers. Cairn has come to rely on Shepherds in big deals like this - not just for their legal advice, but for their solid commercial good sense. They have advised us for over 15 years in a series of international corporate transactions, including deals in the UK, Holland, America, Australia and, most recently, India. They have consistently provided an outstanding added value service, culminating in their key role in this Indian IPO, without doubt the most complex transaction I have ever been involved in."

The deal comes at the end of a good year for Shepherd and Wedderburn’s corporate finance division, during which it was awarded Scottish Corporate Law Firm of the Year**. The firm's stock exchange practice has been very active, with Shepherd and Wedderburn acting in over 34 IPOs or secondary fundraisings since the beginning of 2005.  Looking forward to 2007, in January the firm is again doubling the size of its London office by moving to new premises adjacent to the London Stock Exchange, a reflection of the weight of work being undertaken by the firm in the City. 

James Will, head of the Corporate Finance group, said: “We have had an excellent deal flow over the last few months, with high levels of activity. For example, we are currently representing ScottishPower in the £11.6 billion offer from Iberdrola in steering the deal through the courts and are representing BowLeven in its £58 million placing and its £30.1 million all share offer for FirstAfrica Oil.”

In addition, the firm's Corporate Finance team has acted in a raft of big name deals over the last 12 months:

  • The £2.5 billion Alliance Trust merger;
  • The approx. £5 billion Standard Life demutualisation as court reporter;
  • The Scottish and Newcastle/Kuehne + Nagel Logistics joint venture creating the largest drinks distribution business in the UK;
  • DeepOcean’s £76 million acquisition of CTC Marine Projects, completed by the firm’s new Aberdeen-based oil and gas team;
  • The $100 million bid by First Quantum Minerals for Adastra Minerals;
  • The main market IPO of international engineering consultancy Scott Wilson Group – raising £72 million;
  • The £57.7 million IPO of investment bank Bridgewell Group;
  • The £71 million placing by Teesland Advantage;
  • The £25 million IPO of German hydrogen fuel cell company Proton Power Systems;
  • The IPO of Worthington Nicholls Group and £20 million placing; and
  • The £250 million issue of Floating Rate Notes listed on the Channel Islands Stock Exchange for Dunfermline Building Society.

*Note: The $US 6.3 billion implied Cairn India Limited market capitalisation represents an implied market capitalisation of approximately 282.45 billion Rupees and includes approximately US$600 million (Rs 26.81 billion) of the gross proceeds expected to be retained by Cairn India and excludes any exercise of the over-allotment option.

**Note: The Law Awards of Scotland 2006


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