Shares of Idea Cellular surge after its merger with Vodafone India gets regulatory approval
It traded at Rs 98.60 on the Nifty and Rs 98.50 on the Sensex at 12.30 pm.
Stocks of Idea Cellular gained 7% on the Bombay Stock Exchange on Tuesday a day after the Competition Commission of India approved its proposed merger with Vodafone India. Its shares touched Rs 98.50 on the BSE index at 12.30 pm and Rs 98.60 on the National Stock Exchange Nifty.
The proposed $23-million (approximately Rs 153 crore) merger between Vodafone India and Idea Cellular is likely to be completed by 2018. After the deal is completed, Vodafone will hold 45.1% stake in the new entity, and Idea’s parent firm, the Aditya Birla Group, will own 26%. Other shareholders will hold the remaining 28.9%.
The merger is expected to create the country’s largest telecom company with around 40 crore customers. The merged entity will have a revenue of Rs 81,600 crore and an operating profit of Rs 24,400 crore, reported Mint. However, Idea and Vodafone India’s joint debt will stand at Rs 1.08 lakh crore.
“This landmark combination will enable the Aditya Birla Group to create a high quality digital infrastructure that will transition the Indian population towards a digital lifestyle and make the government’s Digital India vision a reality,” Aditya Birla Group Chairperson Kumar Mangalam Birla had said, according to Business Standard.