Idea Cellular slips 7% due to a likely delay in Vodafone merger

The stock slipped nearly 7% to Rs 56 on the BSE on concerns of likely delay in Vodafone merger as the telecom department is looking to raise a fresh demand of around Rs 47 billion.

Shares of Idea Cellular have slipped nearly 7% to Rs 56 per share on the BSE on concerns of a likely delay in Vodafone merger as the telecom department is looking to raise a fresh demand of around Rs 47 billion.

Both Idea and Vodafone were expecting the merger deal to create India's largest telecom company to be completed by June 30, 2018.

"Vodafone India had merged its all arm into one company and there are dues of around Rs 47 billion related to one-time spectrum charges (OTSC) on the company. DoT will ask Vodafone to either clear dues or furnish bank guarantee before merger with Idea," the PTI report suggested quoting an official source. CLICK HERE TO READ FULL REPORT

DoT at that time has asked Vodafone to clear OTSC dues worth Rs 66.78 billion but the company challenged it in court. Following Supreme Court order, Vodafone had paid only Rs 20 billion to get the deal cleared, added report.

The trading volumes on the counter more than doubled with a combined 25.78 million shares changed hands on the BSE and NSE till 02:55 pm. Idea Cellular hit a 52-week low of Rs 50 on May 14, 2018 on the BSE in intra-day trade.