Idea Cellular fell 6.77% to Rs 56.45 at 14:30 IST on BSE on media reports that the company's merger with Vodafone India may not meet the expected 30 June 2018 deadline.
Meanwhile, the S&P BSE Sensex was down 129.07 points, or 0.36% to 35,560.53.On the BSE, 15.93 lakh shares were traded in the counter so far compared with average daily volumes of 7.95 lakh shares in the past two weeks. The stock had hit a high of Rs 60.05 and a low of Rs 56 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.
According to media reports, the merger of Idea Cellular and Vodafone India may not meet the expected 30 June 2018 deadline as the Telecom Department is looking to raise a fresh demand of around Rs 4700 crore. The demand will be raised from Vodafone India before its merger with Idea Cellular, reports added.
In 2015, Vodafone had merged its four subsidiaries Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink with Vodafone Mobile Services, which is now called Vodafone India. The Telecom Department had then asked Vodafone to clear OTSC dues worth Rs 6678 crore, which the company challenged in court. Following a Supreme Court order, Vodafone had paid only Rs 2000 crore to get the deal cleared, reports suggested.
Idea Cellular and Vodafone India were expecting the merger deal to create India's largest telecom company to be completed by 30 June 2018.
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.
Part of the Aditya Birla Group, Idea Cellular is a pan-India integrated GSM operator, offering 2G, 3G and 4G services.
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