Cairn India shares drop after Cairn Energy sells shares

Cairn sold about 66.8 mn shares in the Indian unit

Shares of Cairn India dropped more than 6 percent after two sources familiar with the matter told Reuters its U.K. parent sold part of its stake to a clutch of institutional investors at a discount.

Cairn sold about 66.8 million shares in the Indian unit, offering the shares at Rs 307.40-317.50 according to a term sheet seen by Reuters on Thursday, below its 327.35 rupee closing price that day.

Cairn India shares were last down 6.4 percent at 306.40 rupees. Citigroup was the book runner to the transaction, the sources said.

On Thursday, sources told had Reuters that the British oil explorer plans to sell about 3.5 per cent of its holding in the company.