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Cairn India said it has always been fully compliant with all Indian income tax laws.
A senior company executive said the company waited for seven years for the verdict and its shareholders needed to know when it would be concluded.
Petronas of Malaysia has picked up about 10 per cent stake in Cairn India Ltd, the subsidiary of Scottish oil firm Cairn Energy Plc, that is to be listed on Bombay Stock Exchange by the end of next month.
The Income Tax department, which is probing Cairn Energy plc's transfer of India assets, has asked the UK-based company not to dispose of its 10.3 per cent holding in Cairn India.
Interest from Malaysia's Petronas in Cairn India and Swiss Petroplus in Cairn India's parent, Cairn Energy, saw the shares of both the companies gaining on the bourses.
Some retail investors have withdrawn from the initial public offer of Cairn India after the closure of the issue, which managed to receive 1.1 times subscription.
Cairn Energy India's initial public offering of 32.88 crore (328.8 million) shares will open on December 11 and close on December 15 at a price band of Rs 160-190 per share.
It is the second firm to have received retrospective tax notice this year after Vodafone Group.
The government is likely to file an appeal against the Cairn arbitration award contesting its sovereign rights to tax, sources said.
India is massively underexplored, says Rahul Shir, CEO, Cairn India.
The proposed takeover of Cairn Energy's India business could see Non-Resident Indian billionaire Anil Agarwal emerging as the richest promoter of a corporate house in India ahead of Mukesh Ambani, who has ruled the list for long.
India Inc can't trim salaries, but it can give shareholders a little more information on why senior executives are getting such fancy compensation packages.
The markets have reacted negatively, for example, to recent news that Cairn India, of which the Anil Agarwal group company Vedanta owns 60 per cent, will give a $1.25-billion loan (about Rs 7,500 crore) on notably easy terms to Sesa Sterlite, another Anil Agarwal group company.
With the disruption caused by the second wave of Covid-19 pandemic, the 'fear of unknown' is looming over the government's privatisation drive. Although there is a lot of uncertainty and unpredictability on how things will unfold, the government is hopeful of completing the transactions listed in the Budget with a delay of one to two months, said a top government official. However, "there are many unknown factors now, and we do not know whether there could be a third wave. But we are trying to carry on with our work", the official said." Since there is a lot of uncertainty, the estimates will have to be revised as rating agencies are revising their outlook for growth.
Movement of rupee and crude oil prices will also dictate the trend
The broader markets are, however, outperforming the larger peer.
Mixed global cues and decline in crude oil prices further dent the sentiments.
Market participants are now awaiting Thursday's meeting of the European Central Bank
Bank shares were the top gainer in early trades with Bank of Baroda up over 4%.
