Shares of Cairn India today gained over 6 per cent amid reports that its erstwhile parent firm Cairn Energy may vote against the merger of the company with Vedanta.
The stock ended the day 6.20 per cent higher at Rs 177.30 on the BSE. During the day, it rose by 10.33 per cent to Rs 184.20.
On the NSE, shares of the company jumped 6.43 per cent to Rs 177.70.
Meanwhile, the BSE has sought clarification from Cairn India with respect to news that Cairn Energy is set to vote against Vedanta's Cairn India offer.
The minority shareholders of Cairn India have raised concerns over the company not getting a "fair valuation" in the USD 2.3 billion all-share merger with parent Vedanta Ltd and use of its over Rs 24,000 crore of cash pile.
The merger needs approval of half of the non-promoter shareholders. Life Insurance Corp (LIC) holds 9.06 per cent and Cairn Energy plc of UK another 9.82 per cent of Cairn India. Vedanta owns a 59.88 per cent stake in Cairn India.
Overall, Vedanta Group has Rs 77,752 crore debt, a part of which can be paid using Cairn India cash.
