Cairn India is trading higher by 4% at Rs 367 on report that the Cabinet on Tuesday gave final approval to Vedanta Resources's acquisition of a majority stake in Cairn India for $8.48 billion.
“The Cabinet Committee on Economic Affairs headed by Prime Minister Manmohan Singh cleared the deal,” the report suggests.
Meanwhile, ONGC and Cairn, Rajasthan Joint Venture have commenced production from the Bhagyam field in Rajasthan. Bhagyarn is the second largest of 25 discoveries made so far by Cairn in the Barmer Basin in Block RJ-ON-90/1, the company said in a filing to the stock exchanges.
The oil exploration and production company has reported a 13% year-on-year (y-o-y) growth in net profit at Rs 2,262 crore for December quarter, on back of a three-fold jump in other income to Rs 112.4 crore and a two third fall in interest cost to Rs 24 crore. However, its quarterly revenue from operations remained flat at Rs 3,097 crore, compared with Rs 3,096 crore in the prior-year quarter.
A combined 250,000 shares have changed hands on the counter on morning deals on both the exchanges.