Cairn India hits 52-week high; Vedanta up 4% as merger become effective

Vedanta and Cairn India were up 3% and 2%, respectively, against 0.56% fall in Sensex at 11:06 am

Vedanta gained 4% to Rs 263, while Cairn India hit a 52-week high of Rs 313, up 3% on BSE in intra-day trade after both the companies on Tuesday announced that that the merger of Cairn India with Vedanta pursuant to the scheme of arrangement has become effective.

This merger consolidates Vedanta’s position as one of the world’s largest diversified natural resources companies, with world-class, low-cost assets in metals & mining and oil & gas.

“Thursday 27 April, 2017 has been fixed as the record date for determining the list of the shareholders of Cairn India to whom the equity and preference shares of Vedanta will be allotted as per terms of the Scheme,” Vedanta said in a press release.

As per the revised terms of the scheme, for each share they hold, Cairn India minority shareholders will receive one equity share and four redeemable preference shares in Vedanta.

Cairn India shareholders as on said record date, who will become shareholders of Vedanta, would also receive an interim dividend of Rs 17.70 per equity share as approved by the board of Vedanta on 30 March 2017, it added.

At 11:06 am; Vedanta advanced 3% at Rs 260, while Cairn India was up 2% at Rs 309, as compared to 0.56% decline in the S&P BSE Sensex.

So far in 2017, Cairn India (up 28%) and Vedanta (up 20%) has outperformed the Sensex, which gain 11% during the period.