Idea Cellular rings loud after CCI nod for Vodafone merger

Idea Cellular advanced 4.68% to Rs 96.15 at 12:25 IST on BSE after the company said that Competition Commission of India approved to the proposed merger of Vodafone India, Vodafone Mobile Services with the company.

The announcement was made after market hours yesterday, 24 July 2017.

Meanwhile, the S&P Sensex was down 30.61 points or 0.09% at 32,215.26.

On the BSE, 16.35 lakh shares were traded on the counter so far as against the average daily volumes of 15.71 lakh shares in the past one quarter. The stock had hit a high of Rs 96.90 and a low of Rs 93.25 so far during the day.

The stock had hit a 52-week high of Rs 123.75 on 20 March 2017 and a 52-week low of Rs 66 on 9 November 2016.

The stock had outperformed the market over the past one month till 24 July 2017, rising 15.75% compared with 3.56% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 8.12% as against Sensex's 8.73% rise. The scrip had also underperformed the market in past one year, falling 13.92% as against Sensex's 15.98% rise.

The large-cap company has equity capital of Rs 3606.41 crore. Face value per share is Rs 10.

Idea Cellular announced that the Competition Commission of India (CCI) approved to the proposed merger of Vodafone India, Vodafone Mobile Services and Idea Cellular. The transaction is expected to close during calendar year 2018 subject to customary approvals.

Separately, Idea Cellular issued clarification after market hours yesterday, 24 July 2017 with regards to new article titled Six telcos understated revenues by Rs 61000 crore.

The company clarified that the news is referring to the Comptroller and auditor general (CAG) report for adjusted gross revenue (AGR) and alleged short payment of revenue share thereon for the financial years 2010-11 to 2014-15. These matters pertaining to the interpretation of the definition of AGR are currently sub-judice and pending for adjudication before Supreme Court and Kerala High Court.

The company will announce Q1 results on 27 July 2017. Idea Cellular reported consolidated net loss of Rs 327.70 crore in Q4 March 2017, compared with net profit of Rs 451.70 crore in Q4 March 2016. Consolidated net sales declined 14.3% to Rs 8109.10 crore in Q4 March 2017 over Q4 March 2016.

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

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