Global brokerage Macquarie on Friday said the buyback of shares announced by Cairn India is aimed at acquiring Cairn Plc's 10.27 per cent residual stake in the company. Cairn India is sufficiently funded to do a buy-back, the brokerage said.
Macquarie said the buyback is a win-win move, though pricing is yet to be revealed. The buyback will be value accretive and will provide visibility to utilization of cash, the brokerage said. (Read full story here)
Macquarie maintained its "outperform" call on Cairn India post the announcement. It has a target of Rs 378 on the stock.
Shares in the company traded 3 per cent higher at Rs 326.55 on the BSE as of 1.52 p.m. as against a 0.62 per cent rise in the Nifty.
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