Cairn falls 2% on revision of Vedanta deal value

Cairn India shares fell by over 2% in morning trade on the bourses today after parent Cairn Energy Plc agreed to lower the price at which it will sell up to a 40% stake in its Indian unit to Vedanta Resources.

Cairn India's shares went down by 2.19% to touch an early low of Rs 302.40 on the BSE, while on the NSE, it slipped by 2.42% to hit a low of Rs 301.90.

On the volume front, over 10 lakh shares of the company changed hands on the bourses in morning trade.

According to analysts, the move is negative for Cairn India.

Cairn Energy has agreed to lower the price at which it will sell up to a 40% stake in its Indian unit to mining group Vedanta Resources.

The announcement was made after market hours yesterday.

Cairn Energy will sell its 40% stake in Cairn India to Vedanta at Rs 355 per share instead of the Rs 405 a share price agreed in August last year. It will now get gross proceeds of Rs 27,007 crore (about USD 6.02 billion) instead of the Rs 30,811 crore (USD 6.84 billion) it was initially expecting.

Meanwhile, the BSE benchmark Sensex was trading flat at 18,414.30 at 1140 hours.