Mumbai, Nov. 27: Cairn India Ltd has set a price band of Rs 160-190 per share for its initial public offering (IPO), which will open on December 11.

At the lower end of the band, The subsidiary of Edinburgh-based Cairn Energy Plc will raise close to Rs 5,261 crore. At the upper end, it will mobilise Rs 6,247 crore.

Cairn Energy Plc said this implied a market capitalisation of approximately Rs 28,245-33,541 crore ($6.32-7.50 billion), excluding the exercise of an over-allotment option for the Indian entity.

This comes after last week’s pre-IPO placement of over 20.96 crore shares at a price of Rs 176.48 apiece. Close to Rs 3,700 crore ($822.47 million) was raised from this deal and it constituted 11.88 per cent of the equity of Cairn India.

At the time of this placement, Cairn said if the flotation price per share (from the IPO) was lower than Rs 176.48 apiece, the placement price would be reduced accordingly.

The largest investor in the placement was a wholly owned subsidiary of Petroliam Nasional Berhad (Petronas), which subscribed for 17.65 crore shares, representing about 10 per cent of the post-flotation share capital.

The remaining 3.31 crore shares were subscribed by a combination of Indian and international institutional investors.

As a result of the placement, the net offer to the public has been reduced from 53.847 crore shares to 32.88 crore.

In a statement issued today, Cairn Energy Plc said the consequent implied valuation for its current interest in Cairn India is $5.72 billion at the bottom of the range and $6.90 billion at the top of the range.