Cairn India slips as parent plans to sell stake

The British oil major, Cairn Energy is eyeing to sell its 10% stake in the open market

Shares of Cairn India have dropped 2.5% after its parent Cairn Energy Plc which holds a minority stake in  Cairn India has decided to exit. The British oil major is eyeing to sell its 10% stake in the open market.

Meanwhile, Cairn Energy faces Rs 10,200 crore penalty from Indian income tax department in a dispute on applying retrospective tax of Rs 29,000 crore on it.

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"The Indian tax department on February 4, 2016 issued a final assessment order, levying Rs 10,200 crore plus interest back dated to 2007 up to Rs 18,800 crore," the company said in a circular on Wednesday to its investors in London.

Cairn Energy has called for an annual general meeting on May 12 to seek shareholder approval to sell its entire residual stake in Cairn India. It is open to any merger or a buyback program involving Cairn India.

The stock opened at Rs 144 and touched a low of Rs 141.60 on the BSE. A total of 67,212 shares have changed hands on the BSE.