Shares of Idea Cellular today
tumbled nearly 10 per cent, wiping out Rs 3,692 crore from the
company's market valuation, after the announcement of the
merger of the Aditya Birla Group-run firm with Vodafone India.
Shares of Idea Cellular today
tumbled nearly 10 per cent, wiping out Rs 3,692 crore from the
company's market valuation, after the announcement of the
merger of the Aditya Birla Group-run firm with Vodafone India.
Idea's stock plunged 9.55 per cent to end at Rs 97.60 on
the BSE. During the day, it plummeted 14.73 per cent to Rs 92.
On the NSE, it dived 9.62 per cent to close at Rs 97.70.
Following the decline in the stock, the company's market
valuation fell by Rs 3,691.87 crore to Rs 35,170.13 crore.
On the volume front, 271.90 lakh shares of the company
were traded on the BSE and over 20 crore shares changed hands
on the NSE during the day.
"Telecom sector has undergone changes over the years.
While on one hand, the sector witnessed consolidation in terms
of players, on the other hand, competitive intensity has been
equally high. In the current scenario, while the merger of
Vodafone-Idea makes them dominant player, the competition
could still be high in the data business within the industry,"
Abhishek Anand, Fund Manager Centrum Broking Ltd, said.
Vodafone India and Idea Cellular today announced the
merger, creating the India's largest mobile operator by
customer and revenue market share.
The merged entity, which will come into force over the
next two years, will be headed by Kumar Mangalam Birla as
Chairman.
The all-share merger for both partners excludes
Vodafone's 42 per cent stake in Indus Towers and will be
effected through issuing new shares in Idea to Vodafone and
result in Vodafone deconsolidating Vodafone India.
Vodafone will own 45.1 per cent in the new company after
transferring 4.9 per cent to the Aditya Birla group for Rs
3,874 crore in cash concurrent with completion of the merger.
Idea will hold 26 per cent of the combined entity while
the rest will be owned by public shareholders.
Among other telecom players, shares of Bharti Airtel
ended 0.76 per cent higher, while Reliance Communications
slipped 0.26 per cent on BSE.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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