Idea Cellular shareholders approve change in name, issue of non-convertible securities
Idea Cellular says the resolutions were passed by the shareholders at the annual general meeting, chaired by managing director Himanshu Kapania, with the requisite majority
Mumbai: Idea Cellular Ltd Tuesday said its shareholders have approved a change in the name of the company and issue of non-convertible securities.
The company said the resolutions were passed by the annual general meeting with the requisite majority, but did not elaborate.
The telephony arm of the Aditya Birla Group is expected to merge with Vodafone India, creating India’s largest telecom operator, in the coming days.
Idea Cellular had on 1 June proposed a new name for the merged entity as Vodafone Idea Ltd. The company had then said that the name change will be finally decided by the shareholders at the EGM.
Idea Cellular on 26 June held an extraordinary general meeting (EGM) at Gandhinagar (Gujarat), which was chaired by the telecom company’s managing director Himanshu Kapania.
The chairman for the EGM (Himanshu Kapania) addressed the members and briefed them on items of special businesses to be transacted at the EGM, Idea Cellular said in a statement.
According to a PTI report, the merger is being held up as Vodafone India, which had merged all its units into one company, had dues worth around Rs4,700 crore related to one-time spectrum charges (OTSC) which the Department of Telecommunications (DoT) asked to clear or furnish bank guarantee before merger with Idea Cellular.
Mint had in February reported that Idea and Vodafone India Ltd, the nation’s second- and third-largest mobile operators, are building a war chest as intense competition in the world’s No. 2 telecom market by users makes it critical for them to spend on strengthening infrastructure to cater to rising demand for data.
The report stated that the merged entity will invest about Rs60,000 crore over a period of three years to ramp up its infrastructure to meet data demand.
Both Vodafone and Idea Cellular expect the merger deal to create India’s largest telecom company to be completed by 30 June.
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