Cairn India scrip up 5% on Vedanta agreement
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Shares of Cairn India rallied on the BSE today and added a whopping Rs 2,850 crore to its market capitalisation after the government approved its deal with Vedanta. The scrip opened on a weaker note but soon recovered and touched an intra-day high of Rs 327.95.
At the end of trading, the scrip was quoted at Rs 325.70, up 4.81 per cent and thereby added Rs 2,850 crore to its market valuations at Rs 61,953 crore even as the broader market closed in the negative zone.
"The uptrend in the stock is because the deal hangover which was there for the last 10 months is finally over and the uncertainty and regularity hurdles are now all clear," Ashika Stock Brokers' Research Head Paras Bothra said adding that the cost based royalty issue has also been factored in.
Meanwhile, Vedanta is trading 0.05 per cent higher to 2,095 pence, in London trading today.
The approval comes with the preconditions that Cairn or its successor has to treat royalty payments on Rajasthan oilfields as recoverable from oil sales.
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