Shares of Vedanta and Cairn India gains after receiving NCLT nod on merger
Shares of Vedanta Limited and Cairn India gained on Indian equity indices after the National Company Law Tribunal (NCLT) on Thursday approved their merger plans.
Vedanta in a BSE filing said, “The National Company Law Tribunal has approved the scheme of arrangement between Vedanta and Cairn India, and their respective shareholders and creditors ('Scheme').
On BSE, shares of Vedanta surged over 2.30% trading at Rs 267.05 a piece.
While shares of Cairn India jumped by nearly 4% trading at Rs 304.5 a piece.
The deal was first announced on 14 June 2015. Terms and conditions of the merger was revised in the month of July 2016.
As per the scheme, Cairn India's minority shareholder will get one equity share in Vedanta and four redeemable preference shares with a face value of Rs 10, at a coupon rate of 7.5% and tenure of 18 months from issuance.
This merger will give Vedanta access to oil and gas explorer Cairn India`s $3.5 billion cash pile.