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Shares of Idea Cellular jumped as much as 6.3 per cent to Rs 53 as the National Company Law Tribunal has approved the merger of Idea Cellular with Vodafone India. The merger will create India’s new leader in mobile operator segment.
To be called Vodafone Idea Ltd, the operator has a subscriber base of over 408 million overtaking Bharti Airtel. The merger is expected to generate Rs 14,000 crore annual synergy, including opex synergies of Rs 8,400 crore, equivalent to a net present value of approximately Rs 70,000 crore.
Following a strong open at Rs 52.50 against Thursday’s close of Rs 49.85, the stock touched intraday high of Rs 53 and a low of Rs 50. More than 17.9 million shares changed hands, 2 times the 30-day moving average. Idea Cellular stock had fallen 53.9 per cent this year as of last close.
(With inputs from Reuters)
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