Vedanta Limited and Cairn India shares gained on Monday after they announced the final terms on Friday to the recommended merger between Vedanta and Cairn India that was announced in June last year. As per final terms and conditions, each Cairn India minority shareholder will receive for each equity share held one equity share in Vedanta Ltd and four redeemable preference shares with a face value of Rs 10 in Vedanta, with a coupon of 7.5 per cent and tenure of 18 months from issuance. Shares of Cairn India closed 3.46 per cent up at Rs 198.65. The scrip opned the day at Rs 194.70 and touched a high and low of Rs 207 and Rs 187, respectively, in trade so far. Sensex closed 292.10 points up at 28095.34. Vedanta closed 1.75 per cent up at Rs 171.90. Shares of the company opened the day at Rs 170 and touched a high and low of Rs 175.20 and Rs 162.85, respectively, in trade. In a BSE filing, Vedanta said, "The boards of Vedanta Limited and Cairn India have approved revised and final terms for the transaction, taking into account prevailing market conditions and having regard to underlying commercial factors." This implied premium of 20 per cent to one month volume-weighted average price of Cairn India share price. Meeting of Vedanta shareholders will held on September 8, while Cairn India shareholders will meet on September 12 to get a minority vote on the merger. Motilal Oswal Financial Services in a research note said, "Our oil and gas team ascribes a fair value of Rs 168 per share (assuming long-term crude price of $55\/bbl); it would be Rs 187 per share at the company\u2019s crude price assumptions ($62 per bbl and 2.5 per cent escalation). The revised terms, at VEDL\u2019s last closing share price, represent around 24 per cent premium to Cairn\u2019s fair value. We believe the likelihood of the merger getting cleared by Cairn India\u2019s minority shareholders has improved significantly with the revised deal. The revised deal terms are better for Cairn shareholders given the additional redeemable preference shares of Rs 30 and the current brent price at $46 per bbl (against $60 per bbl during the earlier merger announcement in June-15)."