Cairn India hits record high on BSE amid stake sale talks
MUMBAI: Cairn India Ltd shares on Friday jumped more than 5% to hit a record high of Rs 358 on BSE between reports that Vedanta . Resources is in talks to buy a majority stake in the UK-based subsidiary of Cairn Energy.
The scenario is unstable for most of the trading session, spikes in the last trading hour on Bombay share Exchange to settle with a net gain of 4.36% at Rs 355.45.
The stock has drawn the attention of reports that Vedanta is in talks to buy a 51% stake in Cairn India from its parent company, Cairn Energy, which holds 62.4, analysts said. % share. The size of the deal is estimated at about 8-8.5 billion USD.
“The deal is positive for equities, as even the end of the deal ($8 billion) will value Cairn India at $15.7 billion relative to what it is,” Elara Securities analyst Alok Deshpande said. The current market cap is $14.4 billion.”
“Short-term, we expect the stock to recover towards the agreed-upon valuation upon the official announcement, scheduled for August 16, according to media reports,” he said. more.
Cairn India’s parent company, Cairn Energy Plc, is also up nearly 2% on the London Stock Exchange and is being quoted at £4.61 in late afternoon trading.
In contrast, NRI billionaire Anil Agarwal led by Vedanta Resources Plc fell 5.5% to 20.61 pounds on the LSE.
Also, Sterlite Industries, a Vedanta Group company, fell more than 4% to close at Rs 160.70 on the Bombay Stock Exchange. The Sterlite is the biggest loser in the Sensex pack today.
“If the deal goes through, it’s clear that Vedanta is planning to be a long-term investor. In that case, we feel it’s fair to value the deal, considering our expectations of viability. potential to increase reserves from other Rajasthan mines in the future,” said Deshpande.