Idea Cellular shares dipped by 8 per cent on Monday post the company’s announcement of merger approval with Vodafone India.
“Board of directors of Idea Cellular Limited have approved the scheme of amalgamation of Vodafone India Limited and its wholly owned subsidiary Vodafone Mobile Service Limited with the company (Idea),” Idea Cellular said in a Bombay Stock Exchange (BSE) filing on Monday.
“Vodafone will own 45.1 per cent of the combined company”, the statement said, adding, "Kumar Mangalam Birla and other promoters of Idea will hold 26 per cent (ownership) of the company".
However, Idea Cellular shares were trading 7.6 per cent down at Rs.99.90 at the National Stock Exchange (NSE) amid investors concerns over the pricing of the new entity.
Profit booking also forced the company’s shares to trade lower as the stock had jumped nearly 50 per cent in the previous three months (from January 18 to March 19, 2017).