Sesa Goa and Sterlite Industries (India) rose by 3.37% and 4.15%, respectively at 11:10 IST on BSE as the Vedanta group's proposed merger of its subsidiaries Sesa Goa and Sterlite Industries (India) has become effective.
Sterlite Industries (India) rose 4.15% to Rs 79 and Sesa Goa rose 3.37% to Rs 135.
The BSE Sensex was down 225.99 points, or 1.22% at 18,372.19.
Shares of Sterlite Industries (India) had underperformed the market over the past one month till 16 August 2013, sliding 14.10% compared with the Sensex's 6.31% decline. The scrip had also underperformed the market in past one quarter, falling 22.96% as against Sensex's 8.15% fall.
Shares of Sesa Goa had underperformed the market over the past one month till 16 August 2013, falling 14.19% compared with the Sensex's 6.31% decline. The scrip had also underperformed the market in past one quarter, sliding 22.24% as against Sensex's 8.15% fall.
Sesa Goa (Sesa Goa) and Sterlite Industries (India) (Sterlite) in a joint statement issued on Saturday, 17 August 2013, said that the merger of Sterlite and The Madras Aluminium Company (MALCO) with Sesa Goa and transfer of MALCO power plant to Vedanta Aluminium (VAL) pursuant to the Scheme of amalgamation and arrangement amongst Sterlite, MALCO, Sterlite Energy (SEL), VAL and Sesa Goa and their respective Shareholders and Creditors ('Composite Scheme') and the Scheme of Amalgamation of Ekaterina (Ekaterina) with Sesa Goa and their respective Shareholders and Creditors (Ekaterina Scheme) has become effective.
The companies have fixed 28 August 2013 as the record date for determining the list of the shareholders of Sterlite, MALCO and Ekaterina to whom the equity shares of the Sesa Goa will be allotted as per terms of the scheme as already announced on 25 February 2012.
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Post the merger, Vedanta will hold 58.3% stake in the combined entity, 'Sesa-Sterlite'. As per the swap ratio, every equity shareholder of Sterlite holding 5 equity shares of the company will be entitled to be issued 3 shares of the Sesa Goa. Every equity shareholder of MALCO holding 10 equity shares will be entitled to be issued 7 equity shares of the Sesa Goa.
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