Government clears Vodafone-Idea merger
The merged entity will create India's largest telecommunication company valued at US$ 23 billion with a 35 per cent market share and nearly 430 million customers.
The Department of Telecommunication(DOT) has given its approval for the amalgamation after the two firms provided for Rs. 7,248.78 crore as one-time spectrum charge (OTSC)
The combined entity -- Vodafone Idea Ltd -- with nearly 430 million customers would overtake Bharti Airtel, which currently has 344 million users. The deal also comes at a time of raging price war, triggered by new entrant Reliance Jio, in the world's second-largest telecom market.
The move comes just a few days before Idea's first quarter FY19 results scheduled for Monday, July 30.
On Friday, the stock of Idea Cellular Limited opened at Rs. 58.05 per share and touched a high/low of Rs. 60.90/Rs. 58.05 and at 10:34 am, the stock was quoting at Rs. 59.60, up by 4.65 per cent.