The scrip, which was flat for most of the session, rose in the last hour of trade on the Bombay Stock Exchange to settle at Rs 355.45 with a net gain of 4.36 percent.
Analysts said the stock was boosted by reports that Vedanta is in talks to buy a 51 percent stake in Cairn India from its parent company, Cairn Energy, which owns 62.4 percent. The deal is estimated to be worth between $8-8.5 billion.
“The deal is positive for the stock, as even the low end of the deal ($8 billion) would value Cairn India at $15.7 billion compared to the current market cap of $14.4 billion,” said Alok Deshpande, analyst at Elara Securities.
“In the short-term, we expect the stock to rise to the value of the deal upon the official announcement, which is expected on August 16, according to media reports,” he added.
Cairn India’s parent company, Cairn Energy Plc, also zoomed nearly 2 percent on the London Stock Exchange and was quoted at 4.61 pounds in late afternoon trade.
In contrast, NRI billionaire Anil Agarwal-led Vedanta Resources Plc fell 5.5 percent to 20.61 pounds on the LSE. Besides, Sterlite Industries, a Vedanta Group company, sank more than 4 percent to close at Rs 160.70 on the Bombay Stock Exchange. Sterlite was the biggest loser in the Sensex pack today.
“If the deal is done, it is clear that Vedanta plans to be a long-term investor. In this case, we feel that the deal value is fair, given our expectation of increased reserves from other areas in Rajasthan at some point in the future.”
As a credible and reliable news source
