Cairn India drops after Vedanta deal value revised

Shares of Cairn India settled 0.58 per cent lower at Rs 307.40 on the BSE on Tuesday, after parent Cairn Energy Plc agreed to lower the price at which it will sell up to a 40 per cent stake in its Indian unit to Vedanta Resources. In intra-day trade, the stock lost 2.87 per cent to hit a low of Rs 300.30.

On the NSE, the scrip closed at Rs 305.90, down 1.13 per cent from the previous close. In terms of volume, over 37 lakh shares of the company changed hands on the bourses.

Meanwhile, the BSE key index Sensex finished higher by 80.04 points at 18,492.45.

According to analysts, the move is negative for Cairn India.

Cairn Energy Plc has agreed to lower the price at which it will sell up to a 40 per cent stake in its Indian unit to mining group Vedanta Resources.

The announcement was made after market hours on Monday.

Cairn Energy will sell its 40 per cent stake in Cairn India to Vedanta at Rs 355 per share instead of the Rs 405 a share price agreed in August last year. It will now get gross proceeds of Rs 27,007 crore (about USD 6.02 billion) instead of the Rs 30,811 crore (USD 6.84 billion) it was initially expecting.