Business
Shares of Idea Cellular today plunged over 6 per cent after the company announced its merger with Vodafone India to create the country's largest mobile telephony services player.
Updated : Mar 24, 2018, 02:58 AM IST
Shares of Idea Cellular today plunged
over 6 per cent after the company announced its merger with
Vodafone India to create the country's largest mobile
telephony services player.
The stock was trading lower by 6.67 per cent at Rs 100.70
apiece on BSE at 1045 hrs. In early trade, it fell to a low of
Rs 92 per share, down by over 14 per cent compared to previous
close.
On the National Stock Exchange, the stock was trading down
by 6.24 per cent at Rs 101.35 at 1045 hrs after touching a low
of Rs 92.35.
Over 12 crore shares of Idea were traded on NSE in morning
session.
Shares of Idea Cellular were trading higher by 2 per cent
at Rs 111.80 on BSE after the announcement of the merger deal.
However, the stock plunged to a low of Rs 92 following
unconfirmed reports the deal may value the stock at much lower
than the current market price.
Idea informed the bourses that its board today approved
the "scheme of amalgamation of Vodafone India Limited (VIL)
and its wholly owned subsidiary Vodafone Mobile Services
Limited (VMSL) with the company".
"The implied enterprise value is Rs 828 billion (USD 12.4
billion) for Vodafone India and Rs 722 billion (USD 10.8
billion) for Idea," a joint statement by the companies said.
After completion of the merger, Vodafone will own 45.1 per
cent of the combined company, Idea will have 26 per cent stake
while the rest will be owned by public shareholders.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)