Vedanta India to buy up to 5.33% stake in Cairn India

Vedanta India will acquire up to 5.33 percent stake, worth over INR 2,200 crore, in its group concern Cairn India next week.

Anil Agarwal-led Vedanta India, which changed the name from Sesa Sterlite last month, is a promoter in Cairn India.

It will acquire up to 100 million shares of the company from another promoter Twin Star Mauritius Holdings Ltd.

In a BSE filing, Vedanta said it will acquire up to 5.33 percent stake or 100,000,000 shares of Cairn India from Twin Star Mauritius Holdings on June 3, 2015 or within a period of 90 days for INR 220.40 per share.

After the acquisition of the shares, Vedanta India's stake in Cairn India will grow from 18.73 percent to 24.06 percent, said the filing on Wednesday.

Twin Star Mauritius Holdings held 39.41 percent stake in Cairn Indiaas of March 2015. In the past, Agarwal has pointed towards plans to merge cash-cows Cairn India and Hindustan Zinc into his flagship Vedanta group firm to create a global natural resources giant to rival the likes of Rio Tinto or BHP Billiton.

Vedanta Group has appointed consultants to explore if it would make sense to merge the two firms into Sesa Sterlite, now called Vedanta India.

Shares of Cairn India were trading up by 0.24 percent at INR191.05 per share in the afternoon trade on the BSE. Stock of Vedanta India were up by 2.37 percent at INR 196.60 apiece at the BSE.

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