Idea Cellular share price rallied 8 percent intraday Friday after its shareholders have approved the scheme relating to the merger of its mobile business with Vodafone India.
Over 99 per cent of Idea shareholders voted in favour of the merger at the shareholders' meeting on October 12, 2017, the filing by the Aditya Birla group firm stated today.
Both telcos have approached the National Company Law Tribunal (NCLT) seeking its nod. In the next step, they need a final approval from the Department of Telecom.
The meeting of the Idea shareholders was convened after directions of the NCLT.
Earlier this year, Vodafone India and Idea Cellular had agreed to merge their operations to create the country's largest telecom operator worth of more than USD 23 billion with a 35 percent market share.
The combined entity of Vodafone India and Idea Cellular, which are currently India's number 2 and 3, respectively, would dislodge Bharti Airtel to counter the fierce price war in the world's second-largest telecom market.
The deal gives Vodafone India an implied enterprise value of Rs 82,800 crore and Idea Rs 72,200 crore.
Post completion of the deal, the British firm will own 45.1 percent stake in the merged entity while the Aditya Birla group, Idea's parent, will have 26 percent after paying Rs 3,874 crore cash for a 4.9 percent stake. The remaining 28.9 per cent will be held by other shareholders.
At 15:08 hours IST, the stock price was quoting at Rs 79.25, up Rs 4.75, or 6.38 percent on the BSE.
(With inputs from PTI)
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