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London-listed Vedanta Resources is merging its two main Indian subsidiaries in a bid to gain access to around £1.7billion in cash.

The firm brings together India’s largest private miner Vedanta Limited and cash-rich oil and gas unit Cairn India.

Shareholders in Cairn India, India’s top private oil producer, will get one share in Vedanta for every share held, the companies said after their boards approved the transaction on Sunday. They will also get one redeemable preference share in Vedanta.

London-listed Vedanta Resources is merging its two main Indian subsidiaries in a bid to gain access to around £1.7billion in cash. Pictured centre is head of Vedanta, Anil Agarwal

Debt-burdened Vedanta Resources began simplifying its complex structure with a 2012 overhaul, but further moves and buy-outs of minorities in cash-rich subsidiaries have long been awaited by the market.

Cairn India has a £1.7billion cash pile, while the Vedanta subsidiary is weighed down with debt.