The shares of the company got listed at Rs 152 on the National Stock Exchange with a discount of five per cent over issue price and at Rs 140 on the Bombay Stock Exchange with a discount of 12.5 per cent over its issue price of Rs 160.

Commenting on the weak start, Cairn Energy's CEO Rahul Dhir said that the company's strong fundamentals was not reflected with investors, however, a strong recovery was on the anvil.

"The current price does not reflect the strong fundamentals of the company. We will increase our production almost five-fold by 2010 and we have very good fields with us," Dhir said.

Meanwhile, Dhir said the company will invest another $1.5 billion in exploration and development activities in India over the next three years and $1 billion of that will go for the first phase of the Rajasthan developments.

"We are now moving Phase-I of our Rajasthan developments forward to first production in 2009," he said.

Cairn India COO Lawrence Smyth said the company has received all necessary permissions to begin major construction work in Rajasthan and had started placing orders for equipment to establish the production facilities as planned.

"We continue working with the government and our JV partners on options to evacuate crude oil from Rajasthan and remain confident that in 2009 first oil is achievable," he said.

He said the company was hopeful of producing 20 per cent of India's total crude production by 2010 at 200,000 barrels per day and the company expects oil output from Rajasthan field to reach 150,000 barrels per day.

Cairn is in talks with refiners across the country to supply crude oil and with the government to lay the pipelines, he said.

The Cairn IPO was oversubscribed 1.1 times despite volatility on the stock markets since the time it opened on December 11. Following the floatation, Cairn Energy Plc now owns 69.5 per cent stake in Cairn India.

Cairn lists at 12.5% discount on BSE