MUMBAI (Commodity Online): Private sector oil exploration major, Cairn India Ltd (BOM: 532792) gained momentum on the bourses as the company successfully secured funds to fund its Rajasthan oil field project.

Cairn India was trading at Rs.283.60 up by over 1.5% on the BSE today as the company is said to have secured USD 1.6 billion from domestic and overseas lenders to fund its ongoing projects in Rajasthan.

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The company stock hit a 52-week high of Rs.289 during intra-day trade today, 15 October 2009.

Cairn India underperformed the market in the past one quarter, gaining 23.63% as compared to the Sensex's return of 24.38%.

Cairn India will use the funds to repay its existing debt of around USD 850 million, the company said in a statement. The borrowings, with a tenure of six years, have been arranged through a combination of dollars and Indian rupees.

Besides securing USD 850 million from State Bank of India (SBI), the company will receive around USD 500 million from UK's Standard Chartered Bank another USD 250 million from the World Bank's International Finance Corporation (IFC).

Cairn India had on 29 August 2009 started crude oil production from Mangala oilfield in Rajasthan and is pumping some 10,000 barrels a day. The company had delivered first volumes of crude oil to the state-run MRPL on 8 October 2009.

Secondly, high crude oil prices helped company stocks to stay at higher levels. Crude oil for November delivery climbed as much as 78 cents, or 1% to USD 75.96 a barrel on the NYMEX on Thursday, 15 October 2009. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

Cairn India reported a net profit of Rs.18.59 crore in Q1 June 2009 as compared to net loss of Rs.46.68 crore in Q1 June 2008. Total income rose 155.1% to Rs.57.61 crore in Q1 June 2009 over Q1 June 2008.

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