From tomorrow, you won’t be able to trade in Cairn India again; here’s why

NEW DELHI: Today is the last day of trading in Cairn India. The stock will be suspended from trading in equity and equity derivatives segment from Wednesday, as the cash-rich oil producer is set to get merged with its debt-ridden parent Vedanta.

As per schedule, Cairn India shareholders, who will become shareholders of Vedanta as on record date, would also receive an interim dividend of Rs 17.70 per equity share in addition of Vedanta shares. Shareholders of Cairn India will get one equity share of Vedanta and four redeemable preference shares of face value Rs 10 at a coupon of 7.5 per cent.

The record date for the share swap has been set as April 27.

Earlier this month, Cairn and Vedanta had announced the completion of the merger. The merger would help the metals and mining company Vedanta access to the cash of Cairn India, helping it cut debt.

Shares of Cairn India were trading 0.11 per cent down at Rs 282.55 in morning trade around 10.30 am (IST). Shares of the company opened at Rs 284 and touched an intraday high and low of Rs 285.70 and Rs 281, respectively, in trade so far.

The existing contracts with expiry dates April 27, 2017, May 25, 2017 and June 29, 2017 will expire on April 25, 2017. Accordingly, no futures and options contracts will be available in the underlying Cairn India for trading from April 26, 2017 onwards.

On the other hand, Vedanta was trading 0.35 per cent down at Rs 230.80 at around the same time.