You are here: Home » Companies » News
Business Standard

NCLT approves Idea-Vodafone merger; joint entity to have 400 mn customers

The proposed merger of Vodafone India and Idea will create an entity with a revenue of around Rs 775-800 bn

Press Trust of India  |  New Delhi 


The Tribunal has approved the proposed between and -- a move that brings both the closer to culminating the deal.

"We wish to inform you that the Hon'ble National Company Tribunal, bench at Ahmedabad, vide its order dated January 11, 2018, has sanctioned the composite scheme of amalgamation and arrangement among Mobile Services Limited and Limited and Limited...," said in a regulatory note today.

Both the groups can go ahead for the final approval for the from the Department of Telecom after Vodafone's appeal for the scheme also gets NCLT nod.

As per latest data published by sector regulator Trai, Idea and jointly have over 400 million mobile subscribers and together account for the largest share of the Indian telecom segment.

is expected to hold around 47.5 per cent stake in the merged entity and rest will be owned by Idea and promoter

The proposed of and Idea will create an entity with a revenue of around Rs 775-800 billion besides eliminating duplication of spectrum and infrastructure capex, as per Ratings and Research.

Further, the spectrum of in seven circles and that of Idea in two, whose permits are expiring in 2021- 22, is together valued at around Rs 120 billion as per last auction price. These permits are not in common circles, and hence there could be potential spectrum capex synergies between the two companies, as per the rating agency.

First Published: Fri, January 12 2018. 16:26 IST