Shares of Cairn India and Vedanta are in focus on Wednesday as they have received no objection from the BSE and the NSE for the proposed merger of Cairn India with Vedanta
Shares of Cairn India and Vedanta were in focus on Wednesday as they have received no objection from the BSE and the NSE for the proposed merger of Cairn India with Vedanta, both the companies made the announcement after market hours on Tuesday.
Vedanta gained 2.12 per cent at Rs 98.95 on Wednesday while Cairn India slid 0.41 per cent at Rs 144.40.
As per the merger scheme, minority shareholders of Cairn India will receive one equity share of Vedanta for each share held in the company. The minority shareholders of Cairn India will additionally get one 7.5 per cent redeemable preference share (RPS) of Vedanta of a face value of Rs 10 each for each share held in the company. No shares will be issued to Vedanta or any of its subsidiaries for their shareholding in Cairn India.
On a year-to-date basis, share price of Vedanta and Cairn India declined 56 per cent and 39 per cent to Rs 145 and 96.90 on September 15. Sensex slid 6.5 per cent during the period.
For the quarter ended June 2015, Vedanta reported a consolidated net profit of Rs 865.94 crore, up 130.57 per cent, against Rs 375.56 crore in the corresponding quarter a year ago. Net profit of Cairn India declined 23.60 per cent year-on-year to Rs 834.98 crore.