Idea Cellular surges 7% after CCI approved merger with Vodafone

The stock surged 7% to Rs 98.30 on BSE on back of heavy volumes

Idea Cellular surged 7% to Rs 98.30 on BSE on back of heavy volumes after the Competition Commission of India (CCI) on Monday approved the merger with Vodafone India.

“The company is pleased to confirm receipt of the letter from the Competition Commission of India dated 24th July 2017, according approval to the proposed merger of Vodafone India, Vodafone Mobile Services Limited, and Idea Cellular under sub section (1) of section 31 of the Act,” Idea Cellular said in a BSE filing.

The transaction is expected to close during calendar year 2018 subject to customary approvals, it added.

Post the transaction, Vodafone will own 45.1% stake in the merged entity while the Aditya Birla group, Idea's parent, will have 26% shareholding after paying Rs 3,874 crore cash for a 4.9% stake. The remaining 28.9% will be held by other shareholders.

“This landmark combination will enable the Aditya Birla Group to create a high quality digital infrastructure that will transition the India population towards a digital lifestyle and make the Government’s Digital India vision a reality,” said Aditya Birla Group Chairman, Kumar Mangalam Birla, while announcement of merger.

Till 12:12 pm; a combined 26.87 million shares changed hands on the counter on BSE and NSE.