Rising Stocks Vedanta & Cairn:- Vedanta Limited gained 4% to Rs 263, while Cairn India hit a 52-week high of Rs. 313, up 3% in intraday trade after both the companies on today announced that that the merger of Cairn India with Vedanta Ltd, in accordance with the scheme of arrangement, has become effective. This merger makes physically stronger Vedanta’s status as the worldwide biggest diversified natural resource companies with low-cost assets in metals & mining and oil & gas.
As per the revised terms of the scheme, Cairn India’s marginal shareholders will get 1 equity share and 4 redeemable preference shares in Vedanta Ltd. Cairn India Ltd’s shareholders would also get an interim dividend, as on said record date, of Rs 17.70 per equity share as sanctioned by the board of Vedanta on 30 March 2017, the company said.
Shares of Vedanta advanced 3% at Rs 260, whereas Cairn India was up 2% at Rs 309, in the late morning hours today, as compared to 0.56% decline in the BSE Sensex. So forth in 2017, Cairn India and Vedanta were up by 28% and 20% respectively outperforming the Sensex, gaining 11% during the period.