Videocon shares surge 17% on spectrum deal

Idea Cellular and Videocon mutually agreed to call off their Rs 3,310-crore spectrum deal for two telecom circles

Shares of Videocon Industries today surged by up to 17% after Bharti Airtel said it will acquire Videocon Telecommunications's spectrum in six circles in the 1800 MHz Band for a consideration of Rs 4,428 crore.

Videocon Industries surged 17% to Rs 128 on BSE.

Bharti Airtel's shares rose by 3.63% to Rs 352.

"Bharti Airtel has entered into a definitive agreement with Videocon Telecommunications Ltd (VTL) to acquire, at an aggregate consideration of Rs 4,428 crore, rights to use 2x5 MHz spectrum in 1800 MHz band for six circles," the company said in a BSE filing.

Meanwhile, Idea Cellular and Videocon Telecommunications have mutually agreed to call off their Rs 3,310-crore spectrum deal for two telecom circles.

In a joint statement released Wednesday, the companies said they have agreed to terminate the agreement regarding spectrum sale in Gujarat and UP (West) with immediate effect.

Idea in November last year had announced to buy airwaves held by Videocon in these two circles for Rs 3,310 crore, which was billed as the first spectrum trading deal of the country.