Idea Cellular slips over 4% on reports of Providence stake sale plan

NEW DELHI: Shares of Idea Cellular slipped over 4 per cent in early trade after reports that Providence Equity Partners is likely to exit the telecom firm by selling its remaining 3.33 per cent stake for an estimated amount of over Rs 1,200 crore.

The scrip was trading 3.97 per cent down at Rs 110.05 around 9.20 am. Shares of the company opened at Rs 110.10 and touched a high and low of Rs 111 and Rs 107.10, respectively, in trade. Benchmark BSE Sensex was up 29.60 points, or 0.10 per cent, at 28,842.48 around 9.20 am (IST).

The stake sale also comes against the backdrop of Idea Cellular being engaged in discussion with rival Vodafone India for a potential merger, according to a report by PTI.

The PE firm -- through its investment arm P5 Asia Investment (Mauritius) -- had picked up 15 per cent stake in Idea Cellular in 2006 for around Rs 1,800 crore and has been gradually offloading stake over the years.

The proposed merger of telecom operators Vodafone and Idea Cellular will create an entity with revenue of around Rs 80,000 crore and the move will be credit positive for the sector, India Ratings and Research said earlier this month.