Cairn India, Vedanta gain as National Company Law Tribunal approves merger

Cairn India hit 52-week high of Rs 306, up 5%, while Vedanta gain 3.4% to Rs 270 on BSE in intra-day

Shares of Cairn India and Vedanta rallied up to 5% on the BSE after the company announced that National Company Law Tribunal has approved the merger.

“The National Company Law Tribunal, Mumbai Bench, has today approved the scheme of arrangement between Cairn India and Vedanta, and their respective shareholders and creditors. The certified copy of the order is awaited from the Tribunal,” Cairn India said in a press release.

Among individual stocks, Cairn India surged 5% to Rs 306, also its 52-week high on the BSE in intra-day trade. The trading volumes on the counter more than doubled with a combined 10.34 million shares changed hands on BSE and NSE so far. Vedanta was up 3.4% to Rs 270 on BSE in intra-day trade.

The public shareholders of Cairn India will receive, for each equity share held, one equity share in Vedanta and four 7.5% redeemable preference shares in Vedanta with a face value of Rs. 10 each.

“The proposed merger of Vedanta and Cairn India is an important strategic step in simplifying the group structure,” the company said.

Cairn India is one of the largest independent oil and gas exploration and production companies in India. A subsidiary of Vedanta, part of the Vedanta Group, is a globally diversified natural resources group.