Idea Cellular slumped 6.29% to Rs 169.05 at 13:15 IST on BSE after the company said total telecom spectrum bid made is valued at approximately Rs 30100 crore.
The announcement was made before market hours today, 27 March 2015.
Meanwhile, the S&P BSE Sensex was down 205.40 points or 0.75% at 27,252.18.
On BSE, so far 5.59 lakh shares were traded in the counter as against average daily volume of 5.01 lakh shares in the past one quarter.
The stock hit a high of Rs 186.90, also a 52-week high for the stock. At the day's high, the stock had risen 3.6%. The stock hit a low of Rs 166.25 so far during the day. At the day's low, the stock slumped 7.84%. The stock had hit a 52-week low of Rs 129.20 on 5 May 2014.
The stock had outperformed the market over the past one month till 26 March 2015, rising 16.50% compared with the Sensex's 4.48% fall. The scrip had also outperformed the market in past one quarter, gaining 20.35% as against Sensex's 0.79% rise.
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The large-cap telecom company has equity capital of Rs 8150.09 crore. Face value per share is Rs 10.
Idea Cellular said it has successfully retained the crucial 900 MHz spectrum and won 54 MHz of 900 MHz Spectrum, out of overall win of 79.4 MHz spectrum, for nine of its leadership service areas covering over 73% of the company's revenues.
Idea's successful bid has helped it retain its spectrum in the 900 MHz band ensuring business continuity and customer service for over 106 million subscribers in these nine markets and related benefit for Idea's overall subscriber base of over 155 million. In this spectrum auction, Idea has also acquired additional spectrum in the 1800 MHz band in six key service areas, 2100 MHz in the strategic metro market of Kolkata, and additional 5 MHz on 900 MHz in Maharashtra for second carrier of 3G services. This will enable Idea to further expand its 3G services to 13 circles covering 80% of its overall revenue and enable 4G roll out on 1800 MHz in 10 service areas covering 61% of Idea's gross revenue.
The 9 MHz spectrum won in Maharashtra will enable Idea to deploy 3G services on 900 MHz (in addition to the existing 2100 MHz band), at an opportune time. Idea will therefore have 3G networks of 900 MHz band in Maharashtra and Delhi, which as per the Q3 December 2014 TRAI data are No.1 and No. 3 markets in India.
Idea's participation in the auction was necessitated due to the renewal of its licenses due in December 2015 /April 2016 across nine key markets namely Andhra Pradesh & Telengana, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh & Chattisgarh, Maharashtra & Goa, Punjab and UP West, where it held the most efficient spectrum band of 900 MHz. These markets collectively represent nearly 70% of Idea's subscriber base and contribute 73% of the company revenues. The spectrum win in these circles will ensure business continuity for another 20 years and help Idea strengthen its leadership in these markets. With the acquisition of 79.40 MHz across three spectrum bands of 900, 1800 & 2100 MHz in the recent auction, Idea now has a total of 270.7 MHz of spectrum on a pan-India level.
Including this auction and November 2012 spectrum auction, Idea has managed to acquire /renew new licenses with liberalized spectrum for 16 out of the 22 service areas, which is among the highest for any telecom operator. The company has next renewal of only four service areas in the Year 2021 and remaining two service areas as late as Year 2026.
The total spectrum bid made by Idea is valued at approximately Rs 30100 crore. The company will be availing of the deferred payment facility offered by the Government and likely to pay Rs 7732 crore as upfront payment, and the remaining amount in 10 equal annual instalments starting after a moratorium of 2 years. With spectrum license renewal behind, the company will now return its focus on building the subscriber base, growing different steams of revenue and mobile data usage while providing a truly world class service to its 155 million customer base.
The provisional results of the spectrum auction were announced by the DoT, after the approval of the Supreme Court, yesterday, 26 March 2015.
Meanwhile, the Ministry of Communications & Information Technology said in a statement late yesterday, 26 March 2015, that the spectrum auction in 1800 MHz, 900 MHz, 2100 MHz and 800 MHz band, which commenced on 4th March 2015 and ended on 25th March 2015 after 115 rounds over 19 days, has fetched over Rs 1.09 lakh crore. In all 470.75 MHz has been put to auction in various LSAs in 800, 900, 1800 & 2100 MHz bands. This compares with 390 MHz in November 2012 and 426 MHz in February 2014.
There was robust activity in the all the spectrum bands and vibrant bidding. Prices have significantly increased in 50 of the 69 offerings with bid price being as high as 300% over reserve price in some instances. Over 88% of the spectrum on offer has been provisionally committed at a value of over Rs 1.09 lakh crore. The overall increase over estimated proceeds from auction is about 37%, Ministry said.
Meanwhile, Idea Cellular replaced DLF as constituent in 50-unit CNX Nifty index today, 27 March 2015.
Idea Cellular's consolidated net profit rose 64% to Rs 767.06 crore on 21.9% rise in total income to Rs 8150.09 crore in Q3 December 2014 over Q3 December 2013.
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