Cairn surges on LSE after SEBI's Vedanta typo error

MUMBAI: The Cairn Energy stock rose 1.81% to 438.70 pence from 430.98 pence on the London Stock Exchange on media reports that India’s securities market regulator , Sebi, had approved the open offer document filed by Vedanta Resources for buying more shares of oil explorer Cairn India. But Sebi said it was a mistake on its part. “It was a typographical and inadvertent error. The moment we noticed it, we immediately rectified the mistake ,” said a Sebi official who declined to be identified.

Shares of the Indian unit of the British utility closed at Rs 346.20, up 1.48%, on the Bombay Stock Exchange. Vedanata can launch the offer only after it secures government approvals. The Cabinet Committee on Economic Affairs, or CCEA, has to approve the transaction. Last year, in August, Vedanta Resources, controlled by Londonbased billionaire Anil Aggarwal, had agreed to buy up to 60% of Scottish firm Cairn Energy’s Indian unit for $9.6 billion.

Subsequently, the London-listed Vedanta had filed a draft letter of offer with Sebi for approval to buy an additional 20% shares of Cairn India from shareholders in keeping with regulatory requirements. Government officials had pointed out in the past that the company’s public announcement regarding acquisition of Cairn India had disclosure-related lapses . Sebi is learnt to have sought stringent disclosures from the merchant banker handling the Vedanta Resources open offer to shareholders of Cairn India.

The regulator sought response to all questions raised on the deal by the petroleum ministry with regard to the transaction. Sebi had given directions to the merchant banker, JM Financial, to provide more disclosures in the revised final letter of offer. “All the regulatory sanctions that are required need to be revealed to investors, or any other information that is detrimental to investors will have to be disclosed,” a Sebi official had told ET earlier.