MUMBAI: The mega-merger deal of Idea Cellular and Vodafone India may not meet the expected 30 June timeline as the Department of Telecommunications (DoT) is looking to raise a fresh demand of around Rs 4700 crore. Idea Cellular stocks fell 6 per cent in intra-day trade at the Bombay Stock Exchange (BSE).
“Vodafone India had merged its all arm into one company and there are dues of around Rs 4700 crore related to one-time spectrum charges (OTSC) on the company. DoT will ask Vodafone to either clear dues or furnish bank guarantee before merger with Idea,” an official said as quoted by PTI.
According to a report from Economic Times, the shares of the company opened at Rs 60.05 and touched a high and low of Rs 60.05 and Rs 57.80, respectively, in trade so far. Benchmark BSE Sensex was down 50 points, or 0.14 per cent, at 35,639 at around the same time.
In 2015, Vodafone had merged its four subsidiaries Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink with Vodafone Mobile Services, which is now called Vodafone India.
The merged entity is proposed to be named Vodafone Idea Ltd if approved by shareholders of Idea Cellular. Vodafone Group and existing promoters of Idea will hold 45.1 and 26 per cent of the equity share capital of the merged company, respectively, and public shareholders will hold the balance 28.9 per cent.
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