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Idea shares tank nearly 10%; mcap dips by Rs 3,692 cr

Press Trust of India  |  New Delhi 

of today tumbled nearly 10 per cent, wiping out Rs 3,692 crore from the company's market valuation, after the announcement of the of the Aditya Birla Group-run firm with Vodafone

Idea's stock plunged 9.55 per cent to end at Rs 97.60 on the During the day, it plummeted 14.73 per cent to Rs 92.

On the NSE, it dived 9.62 per cent to close at Rs 97.70.

Following the decline in the stock, the company's market valuation fell by Rs 3,691.87 crore to Rs 35,170.13 crore.

On the volume front, 271.90 lakh of the company were traded on the and over 20 crore changed hands on the during the day.

"Telecom sector has undergone changes over the years. While on one hand, the sector witnessed consolidation in terms of players, on the other hand, competitive intensity has been equally high. In the current scenario, while the of Vodafone-Idea makes them dominant player, the competition could still be high in the data business within the industry," Abhishek Anand, Fund Manager - Centrum Broking Ltd, said.

Vodafone and today announced the merger, creating the India's largest mobile operator by customer and revenue market share.

The merged entity, which will come into force over the next two years, will be headed by as Chairman.

The all-share for both partners excludes Vodafone's 42 per cent stake in Indus Towers and will be effected through issuing new shares in Idea to Vodafone and result in Vodafone deconsolidating Vodafone

Vodafone will own 45.1 per cent in the new company after transferring 4.9 per cent to the for Rs 3,874 crore in cash concurrent with completion of the merger.

Idea will hold 26 per cent of the combined entity while the rest will be owned by public shareholders.

Among other telecom players, shares of Bharti Airtel ended 0.76 per cent higher, while Reliance Communications slipped 0.26 per cent on

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 20 2017. 19:13 IST