On Friday, Aditya Birla Group declared that the Vodafone India and Idea Cellular with 408 million active subscribers and a revenue market share of 32.2% have finished the fusion to create the country’s biggest telecom company.
The Idea cellular firm on Friday stated, “We aspire to update you that pursuant to filing of the NCLT orders with the relevant Registrars of Companies on 31st August 2018, the Scheme has become effective on even date and the merger of VMSL (Vodafone Mobile Services Ltd) and VIL (Vodafone India Ltd) with the Company has been completed.”
On Friday, Idea shares were up 0.5% at Rs50.10 on the BSE. According to the sources, a new board of directors gathered for the meeting of recently collaborated Vodafone and idea on Friday morning with Kumar Mangalam Birla as the chairman.
Birla in his statement said that “Today, we have formed India’s leading telecom operator. It is really a remarkable moment. And he said that this is way more than just about forming a huge business. It is about our idea of empowering and allowing a New India and meeting the ambition of the youth of our country”.
In an around the country the Vodafone and idea will have a spread of 15,000 branded stores and 1.7 million of retails touch points.
The collaboration will face firm competition from Bharti Airtel and Jio. It has a debt of Rs 1.09 lakh crore but has the option to liquidate an 11.15% stake in Indus Towers which would bring cash of Rs. 5100 crore.
The UK based Vodafone group owns 45.2% stake wherein the Aditya Birla Group has a 26% stake, In the joint venture, and both the companies are on the fully diluted basis.
On Thursday, approval regarding the collaboration of Idea Cellular and Vodafone India came from the National company law tribunal (NCLT) which cleared the last obstacle and permitted the formation of India’s largest mobile company with the maximum number of subscribers and revenue share. The new firm replaced Bharti Airtel which was on the top for last 15 years.