Cairn India Chief Executive Officer Rahul Dhir has sold 15 lakh shares in the company this week to raise funds to subscribe to stock options offered to him by the firm.
Dhir sold the shares in five transactions from January 30 to February 1 through the stock exchanges,Cairn India in a regulatory filing today.
Cairn India board had in August last year extended Dhir’s term as the Chief Executive of the company for five year.
Dhir,who is credited with turning Cairn India into country’s fourth-largest oil and gas after getting it listed on stock exchanges in 2006,has been retained as the Chief Executive of the company after London-based miner Vedanta Resources Plc bought majority stake in the firm from Cairn Energy Plc of UK.
He is due to get some 22 lakh shares in third tranche of stock option this month,after subscribing to which,his shareholding in the company would rise to 39 lakh.
Most of the Rs 51.26 crore proceed from the share sale this week would go towards paying taxes to the government and buying of the third tranche of stock options the company is offering him as part of his compensation package.
He had sold more than 15 lakh shares in August 2009 in a similar fund raising exercise to fund buying of 2.2 lakh stocks offered by the company as part of compensation package.
Cairn India shares were trading at Rs 338.45 at 1300 hrs on the BSE,down 2.42 per cent.