Shareholders of Idea Cellular Limited,
with a requisite majority, has approved the resolution to change the name
of the entity to Vodafone Idea Limited. The
shareholders furthermore approved a proposal to raise Rs. 15,000 crore via
convertible securities in one or more tranches. Idea Cellular Limited is merging
with Vodafone India and is presently the third largest telecom operator in
India.
These proposals are as part of the merger
of Idea Cellular Limited with Vodafone India. The merger of late received a
setback with the Deptt of Telecom had raised a demand from Vodafone of Rs. 4,700
crore in unpaid spectrum fees. A merger would be a significant move to reduce
costs and unlock synergies to enhance competitiveness.
Shares of Idea Cellular were trading in
BSE at Rs.56.60 (down 2.25%) in comparison with the previous close of Rs. 57.90.
The stock hit an intraday high of Rs. 58.60 and intraday low of 56.25. Meantime, benchmark BSE index was trading
lower by 53.95 points at 35,436.09 and the NSE Nifty at 10,734.70, down by
34.45 points.
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