Idea Cellular gains after launch of 4G services

Idea Cellular rose 1.61% to Rs 141.95 at 9:16 IST on BSE after the company announced the launch of its high speed 4G LTE services across all five states of South India viz. Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana.

The announcement was made after market hours yesterday, 23 December 2015.

Meanwhile, the S&P BSE Sensex was up 63.85 points or 0.25% at 25,914.15.

On BSE, so far 10,000 shares were traded in the counter as against average daily volume of 2.86 lakh shares in the past two weeks.

The stock hit a high of Rs 142.30 and a low of Rs 141.30 so far during the day. The stock had hit a record high of Rs 203.90 on 17 April 2015. The stock had hit a 52-week low of Rs 124.35 on 22 December 2015.

The stock had outperformed the market over the past one month till 23 December 2015, gaining 0.18% compared with Sensex's 0.12% rise. The scrip had, however, underperformed the market in past one quarter, declining 1.13% as against Sensex's 0.11% rise.

The large-cap telecom company has equity capital of Rs 3600.02 crore. Face value per share is Rs 10.

In the first phase, Idea Cellular's high speed 4G network will be available across 75 towns in Southern India, the company said in a statement. Idea will rapidly expand 4G services in all Southern India metros and large towns by March 2016, the company said. Idea Cellular is also gearing to launch 4G LTE services by March 2016 in other key markets namely Madhya Pradesh & Chhattisgarh, Maharashtra & Goa, Punjab, Haryana, North East and Orissa, in a phased manner. By June 2016, Idea's 4G footprint will cover 750 cities across 10 telecom circles, the company said in a statement.

On consolidated basis, Idea Cellular's net profit rose 7.1% to Rs 809.26 crore on 14.7% growth in net sales to Rs 8676.58 crore in Q2 September 2015 over Q2 September 2014.

Idea Cellular is one of the leading telecom operators in India. It is a part of the Aditya Birla Group.

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