An oil and gas exploration and development company is to expand its interests in India after raising £25 million on AIM.

An oil and gas exploration and development company is to expand its interests in India after raising £25 million on AIM.

Indus Gas has been valued at £300 million following the IPO, which was managed by nominated adviser Arden Partners.

The Guernsey-registered company received £23.4 million after expenses by issuing more than 15.2 million ordinary shares at 164p each.

The company owns a 90 per cent participating interest in a petroleum concession in Rajasthan, India, where two discoveries have been made.

Indus will use the proceeds to further appraise and develop these discoveries, install gas processing technology and fund further exploration.

Non-executive chairman Marc Holtzman said the placing is a significant part of the company’s development: “The placing was extremely well supported by UK institutions and we are pleased to be able to welcome a range of new and well-regarded shareholders,” he added.

TRACS International complied a competent persons report (CPR) and was approached to do so after Indus viewed previous work for another client. The team of geoscientists and reservoir engineers was led by TRACS director Mark Graham.

Carey Olson acted as Guernsey legal adviser to Indus, led by partner Ben Morgan and senior associate Geoff Ward-Marshall. The law firm’s guidance covered incorporation, obtaining consent to the raising of funds from the Guernsey Financial Services Commission, and the admission of its ordinary shares to trading on AIM.