Cairn down 5%, Vedanta gains on reports of merger plan

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26 Aug, 2025 12:21

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Shares of Cairn India dropped 5.6 percent intraday to hit lows of March 2009 (Rs 170.60) while Vedanta gained 4 percent on reports of merger plan.

After its recent rejig, the boards of Cairn India and Vedanta may meet this weekend to discuss a possible merger, reports CNBC-TV18 quoting unnamed sources on June 8.

Sources said the Vedanta has discussed the merger plans with bankers, including JM Financial and Bank of America Merrill Lynch, as well as roped in tax experts to discuss Cairn Energy Plc’s stake in Cairn India.

CNBC-TV18 learnt that the management believes that the timing for a merger between the two group companies is right as the share price of both companies are almost the same. The companies will work on the swap ratio for a merger only after both boards have given their approval.

Vedanta today reponded to the reports of an impending merger with Cairn, saying it will consider reverse takeover of Hindustan Zinc and Cairn India if it happens.

"We are evaluating transaction with government on minority stakes in Hindustan Zinc and BALCO," it added. Hindustan Zinc has Rs 30,000 crore cash on books and Cairn has Rs 16,000 crore.

In August 2013, Sesa Goa merged Sterlite Industries with itself with the ratio of three shares of Sesa Goa for every five shares held in Sterlite Industries.

At 14:34 hours IST, the scrip of Vedanta was quoting at Rs 182.65, up Rs 5.60, or 3.16 percent and Cairn India was quoting at Rs 172.50, down Rs 8.15, or 4.51 percent on the BSE.