Vedanta-Cairn India merger receives BSE, NSE approval

Metals and mining conglomerate Vedanta said on Tuesday it has received nod from both bourses BSE and NSE on the proposed merger of its oil and hydrocarbon arm Cairn India with itself.

In a BSE filing, the Anil Agarwal-led firm said, "Vedanta and Cairn India have received 'No Objection' from BSE and the National Stock Exchange of India vide their Observation Letters dated September 10, 2015 in relation to merger of Cairn India with Vedanta. No Objection letters has been issued by the stock exchanges after receiving comments from market regulator Securities and Exchange Board of India (Sebi)," it added.

In June, country's largest private miner Vedanta had announced it will absorb oil firm Cairn India in a $2.3-billion all-share deal to create the country's largest diversified natural resources firm.

London-based Vedanta Resources had a debt of $7.7 billion as on March 31, 2015 while its Indian arm Vedanta had another $4.57 billion debt.

Zero-debt Cairn India, on the other hand, has $2.85 billion cash reserve. Shares of Vedanta on fell by 4.06 per cent to settle at Rs 96.90 apiece on the BSE, whereas Cairn India's stocks rose by 1.01 per cent to close at Rs 145 per share.