Videocon Ind shares jump nearly 10% on spectrum deal with Idea

Shares of Videocon Industries climbed nearly 10 per cent today after Idea Cellular signed a pact with Videocon Telecommunications to buy its airwaves in Gujarat and Uttar Pradesh West for Rs 3,310 crore.
The scrip zoomed 9.82 per cent to Rs 143.10 on BSE.
On NSE, it rallied 9.36 per cent to Rs 143.
Videocon Telecommunications is the subsidiary of Videocon Industries.
Stock markets were closed yesterday for a local holiday.
In a first spectrum trade deal in India, Idea Cellular on Tuesday signed a pact with Videocon Telecommunications to buy its airwaves in Gujarat and Uttar Pradesh West for Rs 3,310 crore.

Idea said it intends to use this spectrum for the launch of 4G services in these areas next year.

Along with the right to use spectrum, Idea will also be taking over the outstanding liability of Videocon, which it has to pay to the government for these sets of airwaves.
Idea Cellular in a statement had said it has entered "into an agreement with Videocon Telecommunications Limited (Seller) for acquiring right to use spectrum, pursuant to the DoT 'Guidelines for Trading of Access Spectrum by Access Service Providers' (Guidelines) dated October 12, 2015, for the telecom service areas of Gujarat and Uttar Pradesh (West)."

Videocon had acquired spectrum in 1,800 Mhz band, known as 2G spectrum, in these two service areas for a total of Rs 1,329 crore in November 2012 and made upfront payment of Rs 438.57 crore to the government.