Idea Cellular gains on talks to sell tower biz to Axiata

Meanwhile, the S&P BSE Sensex was up 84.68 points, or 0.43%, to 19,695.16.

On BSE, 59,000 shares were traded in the counter as against an average daily volume of 5.92 lakh shares in the past one quarter.

The stock hit a high of Rs 132.90 and a low of Rs 130.90 so far during the day. The stock had hit a 52-week high of Rs 138.20 on 28 May 2013. The stock had hit a 52-week low of Rs 72.05 on 9 August 2012.

The stock had underperformed the market over the past one month till 3 June 2013, sliding 3.45% compared with the Sensex's 0.18% rise. The scrip had, however, outperformed the market in past one quarter, rising 11.88% as against Sensex's 3.66% rise.

The large-cap telecom company has an equity capital of Rs 3315.28 crore. Face value per share is Rs 10.

According to reports, Idea Cellular is in discussions with its minor shareholder, Axiata of Malaysia, for selling its towers to the Malaysian company, but the deal could get stuck over valuation of assets.

Idea is reportedly looking to divest its 9,400 towers to raise funds for capital expenditure, licence renewals, as well as purchase of airwaves. A team from Axiata is scheduled to arrive in India in the next few weeks to take the negotiations further, reports added.

As on 31 March 2013, Axiata Investments 2 (India) held 19.54 crore shares, or 5.90% stake in Idea Cellular.

Idea Cellular's consolidated net profit rose 28.95% to Rs 308.18 crore on 12.88% rise in total income to Rs 6061.38 crore in Q4 March 2013 over Q4 March 2012.

Idea Cellular, part of the Aditya Birla Group, is the third largest wireless operator in India with a revenue market share of 14.8% (Q3 December 2012).

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