Cairn India gains over 2% on Vedanta deal

Aug 17, 2010 |

mumbai

Cairn India on Tuesday rose over 2 per cent on the Bombay Stock Exchange a day after its UK parent Cairn Energy announced selling 60 per cent stake in Indian arm to Vedanta Resources for $9.6 billion at Rs 405 per share.

Shares of the company surged 2.38 per cent to an early high of Rs 340.8 on the Bombay Stock Exchange. On the National Stock Exchange, the scrip zoomed to Rs 358.70 in morning trade, up 7.7 per cent over the previous close. Cairn India has discovered the nation's largest onland oil field in Rajasthan.

Meanwhile, the broader gauge Sensex was trading at 18,120.16 points, up 0.38 per cent from previous close. Edinburgh-based Cairn Energy, which holds 62.37 per cent stake in Cairn India, said it would sell 60 per cent stake to Vedanta Group for $9.6 billion at Rs 405 per share, reflecting a premium of about 32 per cent to the Cairn India average closing price for 90 days prior to August 14.

Meanwhile, shares of the Vedanta-promoted iron ore firm Sesa Goa were volatile and touched a month low of Rs 312 and hit an early high of Rs 328 in the morning trade.

Shares of Sesa Goa were trading 0.85 per cent higher at Rs 325.30 on BSE at 10.41 am. Vedanta Resources Plc will acquire 31 to 40 per cent interest in Cairn India while the remaining 20 per cent would be taken by group firm Sesa Group.

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