The merger of cash-rich oil producer Cairn India into its debt-ridden parent Vedanta Ltd is now complete, the two firms announced today.

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"This merger consolidates Vedanta's position as one of the world's largest diversified natural resources companies, with world-class, low-cost assets in metals and mining and oil and gas," a statement by the two firms said.

After absorbing its cash-rich subsidiary, Vedanta will have a larger pro forma market cap of USD 15.6 billion and higher free float of 49.9 per cent.

The two companies announced plans of the merger in June 2016, which would give the metals and mining company Vedanta access to the cash of Cairn India, helping it cut debt.

In July last year, Vedanta had sweetened its merger proposal to win over minority shareholders like LIC.

Shareholders of Cairn India will get one equity share of Vedanta and four redeemable preference shares of face value Rs 10 and coupon 7.5 per cent, as against the proposal of one equity share and one preference share earlier.

April 27 has been set as record date for the share swap. "Cairn India shareholders as on said Record Date, who will become shareholders of Vedanta, would also receive an interim dividend of Rs 17.70 per equity share as approved by the Board of Vedanta on March 30, 2017," the statement said.

Also, no shares will be issued to Vedanta or any of its subsidiaries for their shareholding in Cairn India.

Vedanta will arrange for a third-party facility enabling a cash exit for Redeemable Preference Share (RPS) holders at par within 30 days from issuance, the statement said.

Navin Agarwal, Chairman of Vedanta Limited said: "We are pleased to have completed the Vedanta Ltd - Cairn India merger and are very excited about the future of the combined company. With world class assets in metals and mining and oil and gas, Vedanta will fuel India's economic growth and generate value for all stakeholders."

Sudhir Mathur, Acting CEO of Cairn India, said the merger with Vedanta Ltd will de-risk Cairn India by providing access to a portfolio of diversified tier-I, low cost, long-life assets to deliver significant near term growth, while retaining the substantial upside from oil and gas business.

Tom Albanese, CEO of Vedanta Limited, said:"Our continued focus to remain a low-cost operator with low leverage will provide us the financial flexibility throughout the cycle and help us create long term value for all stakeholders."

The merger, he said, will increase the appeal of Vedanta Ltd to global investors as it simplifies the structure and increases the size and free float of the company.