Cairn India shares fall on Rahul Dhir's resignation

[prasad]

Shares in Cairn India fell sharply Thursday on news that the company's managing director and CEO Rahul Dhir has resigned from the Vedanta group firm. Mr Dhir has been the face of the company in India.

He is credited with the success of the Cairn India initial public offer (IPO) in 2006. 46-year-old Mr Dhir is a Wharton graduate and British national.

He had joined Cairn in 2006 from Merrill Lynch, where he headed the energy and power investment banking business.

Mr Dhir's resignation comes just days after the company reported its best ever quarterly performance with a 40 per cent jump in its net profit.


Mr Dhir has been one of the highest paid, non-promoter CEOs in India. He earned over Rs 12 crore in salary last year.

P Elango, director of strategy, has taken over as the interim head of the company.

London-listed Vedanta took a majority stake in Cairn India in 2011 in an $8.7 billion deal, buying most of the stake from Cairn Energy.

At 09.15 a.m., the stock traded 3.5 per cent lower at Rs 313.60, while the broader BSE oil and gas index traded 0.2 per cent higher.

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