New Delhi:Shares of Idea Cellular plunged over 7% on Monday following reports that the mega-merger deal of the company and Vodafone India may not meet the expected 30 June timeline.
The stock slumped 7.18% to close at Rs56.20 on BSE. During the day, it tanked 7.67% to Rs55.90. At NSE, shares of the company dived 7.18% to end at Rs56.20.
The company’s market valuation also fell by Rs1,892.84 crore to Rs24,502.16 crore. In terms of equity volume, 22.21 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.
The mega-merger deal of Idea and Vodafone may not meet the expected 30 June timeline as the telecom department is looking to raise a fresh demand of around Rs4,700 crore, a person privy of the development said.
“Vodafone India had merged its all arms into one company and there are dues of around Rs4,700 crore related to one-time spectrum charges (OTSC) on the company.
DoT will ask Vodafone to either clear the dues or furnish bank guarantee before merger with Idea," an official source told PTI.
Both Idea and Vodafone were expecting the merger deal to create India’s largest telecom company to be completed by 30 June, 2018.