Cairn India Board proposes buyback of shares

26 November 2013

Vedanta Resources Plc

Cairn India Limited - Board proposes Buyback of Equity Shares

The following release was issued today by Vedanta Resources Plc's subsidiary Cairn India Limited regarding the proposal for buyback of its equity shares. This is subject to receipt of the necessary shareholder and regulatory approvals.

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Cairn India Limited

Board proposes Buyback of Equity Shares

Cairn India Limited ("CIL" or "Company") announces the proposal for Buyback of its Equity Shares.

The Board of Directors of the Company in its meeting held on 26 November, 2013 has approved a proposal for the Buyback of Equity Shares of the Company from its existing shareholders, other than the Company's promoters, promoter group, persons in control and persons acting in concert.

The Buyback would be done from the open market through the Stock Exchanges, at a price not exceeding Rs. 335 per Equity Share, up to an aggregate amount not exceeding Rs. 5,725 crores.

The maximum Buyback price represents over 4% premium compared to the average of the weekly high and low of the closing share price of the Company during the last two weeks.

With the above mentioned limits of the proposed Buyback, the Indicative maximum number of Equity Shares of Rs.10 each that canbe bought back would be 170,895,522, resulting in the reduction of Equity Capital by approximately 8.9%.

The Buyback comes on the backdrop of strong cash flows generated by the Company through its operational excellence and the World class asset base. The Company is currently producing over 213,000 boepd and is on track to meet year-end target of over 225,000 barrels of oil equivalent per day from all producing assets.

This proposal is a shareholder reward mechanism through decrease in the equity share capital and a consequent increase in the Earnings per Share of the Company. The Company believes that the Buyback will improve shareholder returns while maintaining the current dividend payout ratio as per the approved policy.

The proposed Buyback is subject to approval of the shareholders of the Company and other regulatory approvals, as may be required. The Company will be seeking approval of the shareholders of the Company by way of a special resolution to be passed through postal ballot as per applicable provisions of the Companies Act, the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 1998 and other applicable provisions.

Post receipt of approval of the shareholders and such other sanctions and approvals as may be required the Company is expected to initiate the Buyback process in January, 2014.

Mr. Sudhir Mathur, CFO, Cairn India said:

"We are happy to announce yet another shareholder reward mechanism in addition to the interim dividend declared last month. This comes on the back of strong operational excellence and robust financials.

The company continues to work on its US$ 3 billion capex program over next three years till FY16 and is well placed to develop its current asset base and monetize the existing exploration opportunities with the objective of strengthening its E&P portfolio."

Contact Details

Investor Relations

Nidhi Aggarwal, Head - Investor Relations +91 98101 97755

[email protected] +91 124 476 4308

Media Relations

Dr Sunil Bharati, Head, Corporate Affairs & Communications +91 99104 86055

[email protected]; [email protected] +91 124 459 3138

For further information, please contact:

About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visit www.vedantaresources.com.

Disclaimer

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.