The share price of Sesa Goa fell 8.9 per cent to close at Rs 332 on the Bombay Stock Exchange (BSE) today. The main reason was the company board’s formal approval to acquire 20 per cent in Cairn India through an open offer, along with its parent, Vedanta Group Plc.
While it was known that UK-based Vedanta was in the process of buying out Cairn India, the markets were not expecting the open offer to be made through Sesa Goa. If there is insufficient take-up in the open offer, Sesa will acquire the balance as part of the Vedanta Group's proposed acquisition of 51-60 per cent stake in Cairn India. During the day, Sesa Goa touched a low of Rs 320 and a high of Rs 357 on BSE.
On the other hand, the share price of yet another Vedanta Group company, Sterlite Industries, was down marginally by 0.06 per cent, to close at Rs 160.60.
Meanwhile, the share price of Cairn India fell 6.4 per cent to close at Rs 332 on the BSE.