Shares of three Vedanta Group firms rose by 9.64% to 12% at 13:29 IST on BSE on reports that the legal hurdle is cleared for the government to sell its stake in Hindustan Zinc and unlisted Bharat Aluminium Company.
Sesa Goa (up 12%), Hindustan Zinc (up 11.29%) and Sterlite Industries (India) (up 9.64%), edged higher.
The BSE Sensex was down 140.85 points, or 0.77% at 18,166.67.
According to media reports, the government has set the stage for allowing Anil Agarwal's Sterlite Industries to buy the residual government stake in Hindustan Zinc and unlisted Bharat Aluminium Company (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 Industries, 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).
Meanwhile, the Vedanta group's proposed merger of its subsidiaries Sesa Goa and Sterlite Industries (India) has become effective.
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.
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.
Cairn India, Hindustan Zinc, Balco, Vedanta Aluminium, Madras Aluminium, Western Clusters in Liberia, Talwandi Sabo Power and Australian Copper Mines have now become subsidiaries of Sesa Sterlite after the restructuring.
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