Cairn India has rallied 4% to Rs 290 after the state-owned Oil and Natural Gas Corp (ONGC) decided to give its consent to Vedanta Resources for taking over Cairn India subject to Cairn, Vedanta and their Affiliates executing a formal agreement with ONGC agreeing to the royalty and cess conditions.
“After detailed deliberations on preemptive rights and economic evaluation and Cairn has agreed to the two conditions relating to cost recovery of royalty and withdrawal of cess arbitration case in respect of blocks, the Board of ONGC resolved that Cairn’s request (for consent to the $9-billion transaction) may be agreed to, subject to Cairn, Vedanta and their Affiliates executing a formal agreement with ONGC agreeing to the royalty and cess conditions," ONGC said in a filing to the stock exchanges.
A combined 184,529 shares have changed hands on the counter in opening deals on the NSE and the BSE.