Idea seeks NCLT nod for Vodafone merger

MUMBAI: Idea Cellular has approached the National Company Law Tribunal (NCLT) in Ahmedabad, seeking its approval for the mobile company’s merger with Vodafone India and Vodafone Mobile Services.

Idea filed the application on Monday after the merger proposal received clearances from the Competition Commission of India and the Securities and Exchange Board of India, the company said in a notice to stock exchanges.

Shares of Idea Cellular rose to an intraday high of Rs 95.45 on the Bombay Stock Exchange Tuesday, before closing 1.3 per cent down at Rs 91.85. The benchmark Sensex ended 0.8 per cent lower.

The $23-billion merger, if completed, would create India’s largest telecom firm that would be better placed to take on the threat posed by Reliance Jio Infocomm. Besides NCLT, the companies will have to get clearances from shareholders and the Department of Telecommunications.

Sebi gave its conditional approval to the merger on Friday and said it would be subject to the outcome of the regulator's ongoing probe and approvals from shareholders and NCLT.

In their no-objection letter on the scheme of arrangement among Vodafone Mobile Services, Vodafone India and Idea Cellular and their respective shareholders and creditors, the stock exchanges said all the conditions put forth by the regulator need to be placed before NCLT too.

Sebi said Idea has given an undertaking that until it gets further directions from the regulator, promoter Pilani Investment would not dispose of shares it purchased before merger announcement.