Idea Cellular lost 7.25% to Rs 58.20 at 11:51 IST on BSE after the company announced getting approval from telecom department to increase FDI limit to 100% from 67.5%.
The announcement was made after market hours yesterday, 4 June 2018.Meanwhile, the S&P BSE Sensex was down 20.85 points, or 0.06% to 34,991.04.
On the BSE, 15.51 lakh shares were traded in the counter so far compared with average daily volumes of 11.26 lakh shares in the past two weeks. The stock had hit a high of Rs 64.10 and a low of Rs 57.50 so far during the day. The stock hit a 52-week high of Rs 118 on 5 January 2018. The stock hit a 52-week low of Rs 50.05 on 14 May 2018.
Idea Cellular said that the company has received approval on its application to increase Foreign Direct Investment (FDI) limit in the company to 100%, from the current 67.5%, from the Department of Telecom (DoT).The approval is for total foreign investment upto 100% in Idea Cellular, and total indirect FDI in its relevant subsidiaries - Aditya Birla Telecom and Idea Cellular Infrastructure Services.
The FDI approval is a major milestone in the merger process of Vodafone India with Idea Cellular, and follows other statutory approvals already received from the Sebi, NSE, BSE, CCI and NCLT Mumbai and NCLT Ahmedabad. The merger of Vodafone India with Idea Cellular is in the final leg of regulatory approvals and is expected to complete in H1CY18, subject to the final approval from the DoT.
On a consolidated basis, Idea Cellular reported net loss of Rs 962.20 crore in Q4 March 2018 as against net loss of Rs 327.70 crore in Q4 March 2017. Net sales declined 24.51% to Rs 6121.50 crore in Q4 March 2018 over Q4 March 2017.
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Idea Cellular is the third largest wireless operator by subscribers in India with a revenue market share (based on AGR) of approximately 17.1% of the Indian mobile telecommunications services industry (excluding wireline revenue for Bharat Sanchar Nigam and Mahanagar Telephone Nigam) for the Q3FY18.
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