Idea Cellular extends slide

Idea Cellular lost 6.92% to Rs 90.85 at 11:22 IST on BSE, with the stock extending Monday's slide triggered by the company's announcement of merger details with Vodafone India.

Meanwhile, the S&P Sensex was down 65.30 points or 0.22% at 29,453.44.

On the BSE, 44.47 lakh shares were traded on the counter so far as against the average daily volumes of 53.35 lakh shares in the past one quarter. The stock had hit a high of Rs 98.95 and a low of Rs 90.15 so far during the day.

The stock had hit a 52-week high of Rs 128.05 on 28 April 2016 and a 52-week low of Rs 66 on 9 November 2016. The stock had underperformed the market over the past one month till 20 March 2017, sliding 10.21% compared with the Sensex's 2.99% rise. The scrip had, however, outperformed the market over the past one quarter, rising 33.24% as against the Sensex's 12.2% rise.

The large-cap company has equity capital of Rs 3603.50 crore. Face value per share is Rs 10.

Shares of Idea Cellular have fallen 19.56% in three trading sessions from its closing of Rs 112.95 on 16 March 2017. The decline in the stock accentuated yesterday, 20 March 2017 as the stock settled 9.55% lower at Rs 97.60 after the company during market hours on that day announced details of its proposed merger with Vodafone India (VIL).

The board of directors of Idea Cellular at its meeting held yesterday, 20 March 2017, approved the scheme of amalgamation of VIL and its wholly owned subsidiary Vodafone Mobile Services (VMSL) with the company subject to receipt of necessary approvals.

Upon the amalgamation becoming effective, the entire business of VIL and VMSL (excluding VIL's investment in Indus Towers, its international network assets and information technology platforms) will vest in Idea Cellular. The agreement contemplates the completion of the proposed amalgamation within a period of 24 months.

Vodafone will own 45.1% of the combined company after transferring a stake of approximately 4.9% to the promoters of Idea/their affiliates (together promoters of Idea) for Rs 3874 crore in cash concurrent with the completion of the amalgamation. The promoters of Idea will hold 26% of the company and the balance will be held by the public.

Idea Cellular believes that the proposed amalgamation will result in creation of largest Indian telecom operator with widest mobile network in the country and pan India 3G/4G footprint.

On consolidated basis, Idea Cellular reported a net loss of Rs 383.88 crore in Q3 December 2016 compared with net profit of Rs 659.36 crore in Q3 December 2015. Net sales declined 3.7% to Rs 8660.74 crore in Q3 December 2016 over Q3 December 2015.

Idea Cellular is one of the leading telecom operators in India.

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