Prabhudas Lilladher- Cairn IPO

Prabhudas Lilladher has recommend investors to subscribe to the public issue of Cairn India.

According to the brokerage house, in a pre-IPO private placement, Cairn India had placed about 11.88% (of the post-issue capital) or 209.7m shares at Rs 176.5 each.

The report added that, at the middle of the price band (Rs 160-190), the stock trades at an EV/Boe of $12.7, which seems to be on the higher side compared to the global peer $11.5 average. Moreover, it is almost at an 80% premium to ONGC’s current EV/Boe of $6. However, ONGC’s valuations are impacted by subsidies, lack of clarity regarding policies and no substantial recoveries over the past decade.

Download here