Sesa Goa today surged nearly 2 per cent in early trade on the Bombay Stock Exchange, a day after the company's shareholder filed a petition in the Supreme Court to prevent the company from buying a 20 per cent stake in Cairn India.
Shares of the Vedanta Group iron-ore firm Sesa Goa rose 1.56 per cent to an early high of Rs 327.25 on the Bombay Stock Exchange.
The scrip saw a similar movement on the National Stock Exchange, and went up by 1.61 per cent to Rs 327.50.
"The move by the shareholder is definitely in the interest of the shareholders, which is taking the stock up," CNI Research CMD Kishore P Ostwal said.
Meanwhile, the broader market was also trading firm at 18,222.79, up 0.24 per cent from previous close.
Sesa Goa's parent firm, Vedanta group has signed a deal to acquire oil Cairn Energy's Indian arm for USD 9.6 billion for which it is seeking part funding by the company.
Yesterday, the petitioner, Harinarayan G Bajaj, alleged that the company itself was acquired by violating the provisions under the Substantial Acquisition of Shares and Takeover Regulations.
He sought the court to direct Sesa Goa "to refrain from making any open offer or investing in the shares of Cairn India Ltd till the outcome of this petition."
As per the Cairn-Vedanta deal, London-listed Vedanta Resources will acquire 31 to 40 per cent interest in Cairn India while the remaining 20 per cent would be taken by group firm Sesa Goa.
The Supreme Court is yet to take a view on admitting the petition filed by Bajaj's counsel Mahesh Agarwal.