Jubilant plans $85-mn share sale, LSE listing

Indian oil explorer Jubilant Energy said it will raise USD 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 USD 85 million, Jubilant Energy said in a regulatory filing to the LSE.

Jubilant Energy, engaged in upstream EP (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 progress Jubilant’s exploration and development of oil and gas assets, to accelerate Jubilant’s ongoing and future exploration programme 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 Chief Executive Officer 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 USD 1 billion for fiscal year 2010.

Jubilant has built up a balanced portfolio of oil and gas assets through participation in licensing rounds since 1995, with a presence in the proven and prolific hydrocarbon basins of Krishna Godavari, Cambay, Cauvery and Assam-Arakan, India.