Shareholders and creditors of Vedanta Limited on Friday gave their approval to the proposed merger of the company with its cash-rich arm Cairn India. Last week, shareholders of the parent firm of Vedanta Ltd, Vedanta Resources have also given their nod for the merger.
At 2.05 pm, shares of Vedanta were trading 5.39 per cent down at Rs 162.40. The scrip opened the day at Rs 167.50 and has touched a high and low of Rs 176.15 and Rs 161.65, respectively, in trade so far. Cairn India shares were also trading 4.16 per cent down at Rs 191.05.
Shares of Cairn India opened the day at Rs 196 and has touched a high and low of Rs 204.40 and Rs 190.30, respectively, in trade so far. Benchmark BSE Sensex was trading 418 points down at 28,379.24.
Cairn India told CNBC TV18 that Vedanta’s expansion will compensate Cairn’s soft production and re-rating of group expected posted merger.
After the merger, Vedanta Resources Plc’s stake in Vedanta will fell to 50.10 per cent from 62.9 per cent. Cairn India’s minority shareholders will own 20.2 per cent and Vedanta minority shareholders 29.7 per cent in the merged entity.
For the quarter ended March 31, 2016, Cairn India reported a net profit of Rs 359.55 crore, down 28.27 per cent, against Rs 501.
27 crore in the corresponding quarter a year ago. Vedanta reported 27.03 per cent down in net profit at Rs 615.02 crore for the quarter under review against Rs 842.85 crore in the same quarter last year.