Idea Cellular surges on buzz over stake sale in tower subsidiary

Idea Cellular surged 4.22% to Rs 79 at 14:10 IST on BSE on media reports that the company is likely to sell 100% stake in its tower subsidiary.

Meanwhile, the S&P BSE Sensex was up 168.84 points or 0.64% at 26,519.01.

On the BSE, 9.43 lakh shares were traded on the counter so far as against average daily volumes of 10.01 lakh shares in the past one quarter. The stock had hit a high of Rs 79.55 and a low of Rs 77.60 so far during the day. The stock had hit a 52-week high of Rs 147.70 on 27 November 2015. The stock had hit a 52-week low of Rs 66 on 9 November 2016. The stock had outperformed the market over the past one month till 28 November 2016, sliding 0.52% compared with the Sensex's 5.7% fall. The scrip had, however, underperformed the market in past one quarter, declining 19.32% as against the Sensex's 5.15% fall.

The large-cap company has equity capital of Rs 3601.13 crore. Face value per share is Rs 10.

Idea Cellular has dropped its earlier plans to sell a minority stake in the tower business and now it is looking to sell 11,000 telecom towers for close to $1 billion, reports suggested.

On a consolidated basis, Idea Cellular's net profit fell 88% to Rs 91.46 crore on 7.2% growth in net sales to Rs 9298.89 crore in Q2 September 2016 over Q2 September 2015.

Idea Cellular is the third largest wireless operator in India. Idea is part of the Aditya Birla Group, which is one of the largest business groups in India.

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