Vedanta India will acquire up to 5.33 per cent stake, worth over Rs 2,200 crore or Rs 22 billion, in its group concern Cairn India next week.
Anil Agarwal-led Vedanta India, which changed the name from Sesa Sterlite last month, is a promoter in Cairn India. It will acquire up to 100 million shares of the company from another promoter Twin Star Mauritius Holdings Ltd.
In a BSE filing, Vedanta India said it will acquire up to 5.33 per cent stake or 100,000,000 shares of Cairn India from Twin Star Mauritius Holdings on June 3, 2015 or within a period of 90 days for Rs 220.40 per share.
After the acquisition of the shares, Vedanta India's stake in Cairn India will grow from 18.73 per cent to 24.06 per cent, said the filing yesterday.
Twin Star Mauritius Holdings held 39.41 per cent stake in Cairn India as of March 2015.
In the past Agarwal has pointed towards plans to merge cash-cows Cairn India and Hindustan Zinc into his flagship Vedanta group firm to create a global natural resources giant to rival the likes of Rio Tinto or BHP Billiton.
Vedanta Group has appointed consultants to explore if it would make sense to merge the two firms into Sesa Sterlite, now called Vedanta India.
Shares of Cairn India were trading up by 0.24 per cent at Rs 191.05 per share in the afternoon trade on the BSE.
Scrips of Vedanta India were up by 2.37 per cent at Rs 196.60 apiece at the BSE.