Stocks

Videocon shares rally nearly 10% on spectrum deal with Idea

PTI Mumbai | Updated on January 22, 2018 Published on November 26, 2015

Shares of Videocon Industries climbed nearly 10 per cent today after Idea Cellular signed a pact with Videocon Telecommunications to buy its airwaves in Gujarat and Uttar Pradesh West for Rs 3,310 crore.

The scrip zoomed 9.82 per cent to Rs 143.10 on the BSE. On the NSE, it rallied 9.36 per cent to Rs 143.

Videocon Telecommunications is a subsidiary of Videocon Industries.

In a first spectrum trade deal in India, Idea Cellular had on Tuesday signed a pact with Videocon Telecommunications to buy its airwaves in Gujarat and Uttar Pradesh West for Rs 3,310 crore.

Idea said it intends to use this spectrum for the launch of 4G services in these areas next year.

Along with the right to use spectrum, Idea will also be taking over the outstanding liability of Videocon, which it has to pay to the government for these sets of airwaves.

Idea Cellular in a statement had said it has entered “into an agreement with Videocon Telecommunications Limited (Seller) for acquiring right to use spectrum, pursuant to the DoT ‘Guidelines for Trading of Access Spectrum by Access Service Providers’ (Guidelines) dated October 12, 2015, for the telecom service areas of Gujarat and Uttar Pradesh (West).”

Videocon had acquired spectrum in 1,800 Mhz band, known as 2G spectrum, in these two service areas for Rs 1,329 crore in November 2012 and made upfront payment of Rs 438.57 crore to the government.

Published on November 26, 2015
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