Shares of Sesa Goa jumped over 13 per cent on the bourses on Thursday on news of being included in the 30-share benchmark S&P BSE Sensex in the coming days.
The company will replace Sterlite Industries in the Sensex from August 27. The move comes in the wake of the scheme of amalgamation between the two Vedanta group firms whereby Sterlite Industries has been merged with Sesa Goa.
Cheering the news, Sesa Goa's scrip zoomed 13.10 per cent to close at Rs 155.45 on the Bombay Stock Exchange. In intra-day the stock rallied 16.73 per cent to Rs 160.45. At the National Stock Exchange, the scrip closed at Rs 155.50, up 13.09 per cent from its previous close.
Helped by the rise in the stock price, the market value of Sesa Goa went up by Rs 1,565 crore to Rs 13,510 crore.
"Sesa Goa shall be added to all proposed indices with current outstanding shares; new shares issued to the shareholders of Sterlite Industries (India) Ltd will be added to Sesa Goa Ltd once new shares are available for trading," BSE had said in a circular on Wednesday.
Shares of Sterlite Industries also zoomed 10.42 per cent and settled at Rs 87.45 at BSE.
In the S&P BSE 500 index, Indiabulls Housing Finance Ltd would replace Sterlite Industries from the same date.
The merger, first announced on February 25, 2012, is aimed at creating a mega Indian natural resources giant, Sesa Sterlite. It would also result in a Rs 1,000 crore annual saving for Vedanta through a reduction in debt-servicing cost as most of its debt gets transferred to the new entity.
With inputs from PTI