A London-listed mining group, Vedanta Resources has acquired another 10% stake in Cairn Energy’s Indian subsidiary for $1.5 billion. Vedanta has purchased 191.92 million equity shares of Cairn India at Rs. 355 per share.

Edinburgh-based Cairn Energy has revealed that it will sell another 30% of its stake in Cairn India, if it receives necessary consents and approvals from the government of India.

After the acquisition of stake in Cairn Energy, Vedanta now owns 28.5% stake in Cairn India. Even after the deal Cairn Energy will remain the major stake holder with 52.2% shares.

Vedanta Resources said in a statement, “Vedanta continues to work with Cairn Energy to secure the necessary consents to complete the purchase of a further 30% of the fully diluted share capital of Cairn India and a further announcement will be made in due course”.

In August last year, Vedanta Resources agreed to buy a 40-51% stake in Cairn India but later lowered it to only 40%. Vedanta had to Rs. 405 per share to pay Cairn Energy, including a Rs. 50 per share non-compete fee. Last month, Cairn Energy decided to proceed the deal without the compete fee to make up for the loss of revenue, which the company may have to pay if the government conditions on royalty and payments are accepted.