Mumbai, Sept. 12: Shareholders of Cairn India today approved the company's merger with Vedanta Ltd.

At a court-convened meeting of the equity shareholders here today, close to 65.41 per cent of the members present and validly voting backed the resolution approving the scheme.

A statement from Cairn India said the scheme was approved by a majority of the minority shareholders. About 72 per cent of the votes cast by the public shareholders favoured the resolution.

The scheme is now subject to the approvals of the jurisdictional high courts and other regulatory bodies and is expected to be effective by the end of this financial year.

Vedanta shareholders had last week approved the merger. However, the shareholder meeting of Cairn India was keenly watched because of apprehensions over the amalgamation of the cash-rich oil firm with its debt-laden parent Vedanta.

The decision of key shareholders such as the LIC and Cairn Energy Plc held the key. According to stock exchange data, the LIC holds a 9.06 per cent stake in Cairn India, while Cairn Energy has 9.82 per cent.

There have been reports that the state-owned insurance company will vote in favour of the merger. This however, could not be confirmed today.

"I am pleased that the shareholders of Cairn India have approved the merger. We are confident that the financial strength and diversified portfolio of tier I assets of the merged company, with strong growth potential, will provide de-risked earnings and stable cash flows and drive long-term value," Cairn India chairman Navin Agarwal said.