Jubilant Energy plans $85-mn share sale

Indian oil explorer Jubilant Energy today said it would raise $85 million through institutional placement and plans to get listed on the London Stock Exchange (LSE) on November 24. The company would place 69,379,430 new shares with institutional investors at 77 pence per share to raise gross proceeds of $85 million, Jubilant Energy said in a filing to the LSE.

Jubilant Energy, engaged in upstream E&P (exploration and production), is also mulling the admission of its entire issued share capital to trade on the AIM market of the LSE, which is expected to take place on November 24, the filing added.

The proceeds of the listing, would be used to expand Jubilant’s exploration and development of oil and gas assets, and for general corporate purposes.

“The money we are raising will enable us to carry out our work programme targeting near term value enhancing opportunities in the region as well as some of the high-impact exploration potential across our acreage,” Jubilant CEO Ajay Khandelwal said.

Jubilant is currently part of a diversified Indian business group (Wider Jubilant Group) founded by Shyam Bhartia and Hari Bhartia with a presence in approximately 50 countries and revenues of around $1 billion for 2009-10.