"It sought $1.05 billion in compensation for the loss of value its 9.8 per cent shareholding in its erstwhile subsidiary Cairn India suffered following income tax department raising the tax demand in January 2014 and attaching the shares. Through the IPO it raised Rs 8,616 crore and then in 2011 went on to sell majority stake in Cairn India to mining giant Vedanta Group for $8.67 billion.Cairn Energy still holds 9.8 per cent in Cairn India which the I-T department has barred it from selling. Cairn India's IPO was among the largest in Indian history, and the sums involved were significant. "The Indian government's decision not to demand capital gains tax was no mere oversight or accident. "To accomplish what was to be one of the largest-ever IPOs in the Indian history, however, Cairn had to reorganise its corporate group structure significantly," it said.

Source: Times of India July 12, 2016 06:41 UTC