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NCLT Approves Cairn-Vedanta Merger; Shares Rise
Shares of both Cairn India and Vedanta rose more than 3 percent after the announcement.
23 Mar 2017, 02:23 PM IST 
Anil Agarwal, chairman of Vedanta Resources
Plc. (Photographer: Simon Dawson/Bloomberg)
The National Company Law Tribunal (NCLT) approved Vedanta Ltd.’s merger with its cash-rich oil subsidiary Cairn India Ltd., the metals and mining company told exchanges in a notification on Thursday.
The companies have received all other regulatory approvals, Anil Agarwal, group chairman of Vedanta Resources Plc, had told BloombergQuint in an earlier interview.
Through the merger, Agarwal plans to use Rs 16,867-crore cash lying with Cairn to pay off part of Vedanta’s debt. This has led to concerns among minority shareholders.
Shares of Vedanta rose 3.1 percent to Rs 269 while Cairn India rose 4.2 percent to Rs 303 after the announcement.
(With inputs from PTI)