The telecom company Idea Cellular currently under the proposal of likely merger with Vodafone India has surged by as much as 4% in intra-day today, rising to a market price of Rs. 63.20 on the NSE.
The proposed merger will create the biggest telecom company with a high user base from day 1. As per the press agencies report citing officials the department of telecom is likely to approve the merger process today. The merged entity to be called Vodafone India Ltd is expected to be worth more than USD 23 billion or more than Rs. 1.5 lakh crore.
In the ongoing calendar year, the stock of Idea has seen a sharp fall of as much a 44% till the last trading session. But the merger approval news, has raised upwards the sentiment in the stock.
The merger will also help the debt-ridden company to consolidate debt as together the combined debt of the company totals to Rs. 1.15 lakh crore.
At the time of reporting, the stock of Idea Cellular was quoting at Rs. 62.25 higher by 2.64% on the NSE.