Oil and metals producer Vedanta Resources has signalled it is considering a merger of two or more of its Indian subsidiaries, which could provide the debt-burdened units access to cash from other operations.

In a statement which disclosed the possibility of a merger of its Bombay-listed subsidiaries Vedanta  and Cairn India (CIL), the holding company, Vedanta Resources, said it would maintain its London-listing in case such transaction took place.

"Should a transaction with CIL proceed, it could potentially be considered a reverse takeover," Vedanta said in the statement.

"In addition, in line with the group's stated strategy to continue to simplify the group structure, the group continues to evaluate a transaction with the government of India in relation to their minority stakes in Hindustan Zinc Limited and Bharat Aluminium Company," it added, referring to two other subsidiaries in which the government holds large stakes.

The statement was issued in response to media reports suggesting an imminent merger.

Vedanta Resources shares in London rose as much as 8 percent after the announcement, on course for the biggest one-day rise since mid April.

The London-listed parent has a majority stake in Vedanta Resources, which in turn holds a controlling stake in Cairn.-Reuters