Idea Cellular plunges on violation of M&A norms

Idea Cellular has plunged 6% to Rs 59 on reports that the Additional Solicitor General of India has held the company responsible for violating the merger and acquisition norms.

The authority has suggested stringent penalties, including a Rs 300-crore fine, withdrawal of 3G spectrum in four circles and cancelling 2G licences in six circles.

The proposed penalty is for allegedly violating merger and acquisition norms when the Aditya Birla Group company bought equity stake in Spice Telecommunication in 2008, newspaper reports suggest.

The stock of Idea Cellular opened at Rs 62.25 and hit a low of Rs 58.20 on the NSE. A combined 771,454 shares have changed hands on the counter in opening deals.