Shares of Idea Cellular on Monday plunged over 6 percent after the company announced its merger with Vodafone India to create the country's largest mobile telephony services player.
Mumbai: Shares of Idea Cellular on Monday plunged over 6 percent after the company announced its merger with Vodafone India to create the country's largest mobile telephony services player.
The stock was trading lower by 6.67 percent at Rs 100.70 apiece on BSE at 1045 hrs. In early trade, it fell to a low of Rs 92 per share, down by over 14 percent compared to previous close.
On the National Stock Exchange, the stock was trading down by 6.24 percent at Rs 101.35 at 1045 hrs after touching a low of Rs 92.35.
Over 12 crore shares of Idea were traded on NSE in morning session.
Shares of Idea Cellular were trading higher by 2 percent at Rs 111.80 on BSE after the announcement of the merger deal.
However, the stock plunged to a low of Rs 92 following unconfirmed reports the deal may value the stock at much lower than the current market price.
Idea informed the bourses that its board on Monday approved the "scheme of amalgamation of Vodafone India Limited (VIL) and its wholly owned subsidiary Vodafone Mobile Services Limited (VMSL) with the company".
"The implied enterprise value is Rs 828 billion (USD 12.4 billion) for Vodafone India and Rs 722 billion (USD 10.8 billion) for Idea," a joint statement by the companies said.
After completion of the merger, Vodafone will own 45.1 percent of the combined company, Idea will have 26 percent stake while the rest will be owned by public shareholders.