Three Vedanta group metal stocks dropped by 4.51% to 8.38% at 15:11 IST on BSE on profit booking after a sharp rally on Tuesday, 20 August 2013.
Meanwhile, the S&P BSE Sensex was down 344.90 points or 1.89% at 17,901.14
Vedanta group stocks declined after spurting on Tuesday, 21 August 2013. Hindustan Zinc (down 8.38%), Sesa Goa (down 8.03%) and Sterlite Industries (India) (down 4.51%) dropped.
Hindustan Zinc had jumped 13.1% on Tuesday. Sesa Goa had rallied 15.93% while Sterlite Industries (India) had galloped 9.91% on Tuesday. The rally was triggered by reports that the legal hurdle has been cleared for government's stake sale in Hindustan Zinc and the unlisted Bharat Aluminium Company (Balco).
According to media reports, the government has set the stage for allowing Anil Agarwal's Sterlite Industries (India) (Sterlite) to buy the residual government stake in Hindustan Zinc and Balco, which were disinvested during the BJP-led National Democratic Alliance (NDA) regime.
In 2001, the government had sold a 51% stake in Balco to Sterlite, leaving it with 49% holding. The government holds 29.54% stale in Hindustan Zinc, while Sterlite has 64.92% stake (as on 30 June 2013)
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Meanwhile, Sesa Goa on Monday, 19 August 2013, said that the merger of Sterlite Energy (SEL) with Sesa Goa and the demerger of the aluminium business undertaking of Vedanta Aluminium (VAL) into Sesa Goa pursuant to the Scheme of Amalgamation and Arrangement have become effective. The company's wholly owned subsidiary, Bloom Fountain, would acquire 38.68% stake in Cairn India together with the associated debt, effective 26 August 2013. Further, the company has also approved the acquisition of 1,215 MW thermal power plants situated at Jharsuguda and 90 MW co-generation facility at Lanjigarh, from its wholly owned subsidiary, VAL, on a going concern basis.
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.
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.
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