Vedanta shares gained as much as 3.79 per cent on Wednesday after the mining company Vedanta Resources on Tuesday said its shareholders have approved the merger of group firms Vedanta Ltd and Cairn India. At 10.05 am, shares of Vedanta were trading 2.47 per cent up at Rs 178.40. The scrip opened the day at Rs 177.25 and has touched a high and low of Rs 180.70 and Rs 177.25, respectively, in trade so far. Later, Vedanta India shares closed flat at Rs 174.10, while Cairn India shares closed 1.23 per cent down at Rs 200.55.
Shares of Cairn India kicked off the day at Rs 208.15 and has touched a high and low of Rs 209.20 and Rs 205.50, respectively, in trade so far. Benchmark BSE Sensex was trading 10.90 points down at 28,967.12.
“Vedanta Resources announces that at its General Meeting held on September 6, the resolution put to shareholders in relation to the proposed merger of Vedanta Ltd and Cairn India was duly passed on a poll,” Vedanta Resources said in a regulatory filing.
After the merger, London-listed parent Vedanta Resources Plc’s holding in Vedanta will drop to 50.1 per cent from 62.9 per cent. Vedanta minority shareholders will own 29.7 per cent, while Cairn India’s minority shareholders will own 20.2 per cent stake in the merged entity.
For the quarter ended June 30, 2016, Vedanta reported a consolidated net profit of Rs 615.02 crore, down 27.03 per cent, against Rs 842.85 crore in the corresponding quarter a year ago. Cairn India reported 28.27 per cent year-on-year fall in consolidated net profit at Rs 359.55 crore for the quarter under review against Rs 501.27 crore in the same quarter last year.