Cairn India and Vedanta rallied at 11:13 IST on BSE, extending recent rally on media reports that the Life Insurance Corporation of India has given its informal acceptance for the proposed merger of Cairn India with Vedanta.
Shares of Cairn India were up 5.75% at Rs 171.90. The stock had surged 8.33% to settle at Rs 162.55 yesterday, 12 July 2016.
Shares of Vedanta were up 6.18% at Rs 169.35. The stock had rallied 7.34% to settle at Rs 159.50 yesterday, 12 July 2016.
Meanwhile, the S&P BSE Sensex was down 2.72 points or 0.01% at 27,805.42.
Reports suggested that the Life Insurance Corporation of India (LIC) has given its informal acceptance for the proposed merger of Cairn India with Vedanta. LIC holds 9.06% stake in Cairn India as per the shareholding pattern as on 30 June 2016. It may be recalled that the Indian government had in April this year said that it won't allow the merger of Cairn India with Vedanta unless Cairn India resolves its tax issue of Rs 10247 crore. Vedanta had in June 2015 announced merger of Cairn India in a $2.3 billion all-share deal to create India's largest diversified natural resources firm.
Cairn India, a part of the Vedanta group, is one of the largest independent oil and gas exploration and production companies in India.
On consolidated basis, Cairn India reported net loss of Rs 10948.22 crore in Q4 March 2016, higher than net loss of Rs 240.82 crore in Q4 March 2015. Net sales declined 35.9% to Rs 1716.83 crore in Q4 March 2016 over Q4 March 2015.
Vedanta is a diversified natural resources company, whose business primarily involves producing oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power. The company has a presence across India, South Africa, Namibia, Australia, Ireland, Liberia and Sri Lanka. Vedanta, formerly Sesa Sterlite is the Indian subsidiary of Vedanta Resources Plc, a London-listed company.
On consolidated basis, Vedanta reported net loss of Rs 11181.26 crore in Q4 March 2016, lower than net loss of Rs 19228.12 crore in Q4 March 2015. Net sales declined 10.7% to Rs 15829.13 crore in Q4 March 2016 over Q4 March 2015.
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