Idea Cellular surges 16% after it pays Rs 72 billion with Vodafone to DoT

Shares of Idea Cellular have surged 16% to Rs 61.10 per share on the BSE on the back of heavy volumes in anticipation that the merger with Vodafone is likely to be approved in the next few days.

According to Business Standard report, Idea Cellular and Vodafone have deposited a total Rs 72 billion over the spectrum charge demand made by the Department of Telecommunications (DoT) for merging their mobile business.

With the financial dues out of the way, the merger of Vodafone and Idea Cellular is likely to be approved in the next few days, the report said quoting a DoT source.

The companies have deposited a bank guarantee of Rs 33.22 billion for one-time spectrum charges and Rs 39.26 billion cash for spectrum liberalisation. Having made the payment, the merged entity, to be called Vodafone Idea, could still challenge the dues, the DoT source said, according to the report.

The board of directors of Idea Cellular is scheduled to meet on Monday, July 30, 2018, to consider and approve the un-audited financial results of the company for the first quarter ended June 30, 2018.

At 12:14 pm; Idea Cellular was trading 15.7% higher at Rs 60.95 on the BSE, as compared to 0.39% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 39 million shares changed hands on the BSE and NSE so far.