Shares of Idea Cellular surged a
massive 26 per cent on the bourses today after the global
telecom giant Vodafone confirmed that it is in discussion to
merge its India mobile business with Aditya Birla group firm.
On BSE, the stock jumped 25.90 per cent to close at Rs
97.95. During the day, it gained 29.2 per cent to Rs 100.50.
The scrip settled at Rs 98, up 25.64 per cent on NSE.
Following the rally, the market capitalisation of Idea
Cellular rose by Rs 7,257.41 crore to Rs 35,278.55 crore.
On the volume front, 1.53 crore shares were traded on BSE
while 15.48 crore scrips changed hands on NSE.
Rival Bharti Airtel ended the day on BSE at Rs 347.65, up
7.48 per cent. On NSE, it settled the day up 7 per cent at Rs
346.40.
In a BSE filing, Idea Cellular said it constantly
evaluates various opportunities to enhance stakeholders’
value.
“As part of the exercise, the company has been in
preliminary discussions with Vodafone,” it said.
Idea emphasised that the fundamental premise of
preliminary discussion is based on “equal rights” between the
Aditya Birla group and Vodafone in the combined entity.
“In view of the fact that the discussion is at preliminary
stage, the company is not in a position to share any further
details… Further, there is no certainty that the discussion
with them will result in any agreement,” the company said.
“Vodafone confirms that it is in discussions with the
Aditya Birla group about an all-share merger of Vodafone India
(excluding Vodafone’s 42 per cent stake in Indus Towers) and
Idea,” Vodafone said in a statement.
Any merger will be effected through issuance of new shares
in Idea to Vodafone and would result in de-consolidation of
Vodafone India, it added.
(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)
Source: dnaindia.com