Idea Cellular and Vodafone India have completed their merger process and officially started operations as Vodafone Idea with a subscriber base of more than 408 million. The merged entity has pipped Bharti Airtel (344.88 million users in July) to claim the top spot.
The company will also have the largest voice network with over 2 lakh GSM sites to cover 1.2 billion subscribers, or 92 per cent of the population. Its spectrum portfolio will comprise 1850 MHz and a number of broadband carriers, providing 2G, 3G and 4G services, Idea Cellular said in a statement.
“Today, we have created India’s leading telecom operator. It is truly a historic moment. And this is much more than just about creating a large business. It is about our vision of empowering and enabling a new India and meeting the aspirations of the youth of our country,” Kumar Mangalam Birla, Chairman of Aditya Birla Group and Vodafone Idea, said. “Digital India, as our Prime Minister describes it, is a monumental nation-building opportunity. At Vodafone Idea, we are partnering in this initiative by building a formidable company of international repute, scale and standards,” Birla added.
An equity infusion of ₹6,750 crore at Idea and ₹8,600 crore at Vodafone, coupled with monetisation of standalone towers of both companies for an enterprise value of ₹7,850 crore, will provide the company a cash balance of over ₹19,300 crore. This is post a payout of ₹3,900 crore to the DoT, it added.
Additionally, Vodafone Idea has the option of monetising an 11.15 per cent stake in Indus, which would equate to a cash consideration of ₹5,100 crore.
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