Idea Cellular files merger application before NCLT, after getting approval from SEBI

India's third largest telecom operator Idea Cellular today said that it has filed an application before the National Company Law Tribunal ( NCLT), Ahmedabad Bench, for approval of the merger with Vodafone India Ltd. and Vodafone Mobile Services Ltd.

The company said, "Following the receipt of approvals from Competition Commission of India on 24 July 2017 and the Stock Exchanges/SEBI on 04 August 2017 and in accordance with the terms thereof, Idea Cellular Ltd. (the Company) has yesterday filed an application before the National Company Law Tribunal, Ahmedabad Bench, for approval of the merger of Vodafone India Ltd. and Vodafone Mobile Services Ltd. with the Company."

Meanwhile, Security Exchange Board of India (SEBI) and exchanges have recently given a conditional approval to the merger deal between both the companies.

To recall, the deal was announced in March this year to create the country's largest mobile phone operator worth more than $23 billion with a 35 percent market share.

Post the transaction, Vodafone will own 45.1 percent stake in the merged entity while the Aditya Birla group, Idea's parent company, will have 26 percent share after paying Rs. 3,874 crores cash for a 4.9 percent stake.

The remaining 28.9 percent will be held by other shareholders. The combined entity of Aditya Birla Group's Idea Cellular and Vodafone India will have the widest network in the country and pan-India 3G/4G footprint, the companies earlier said in a statement.

"The combination of Vodafone India and Idea will create a new champion of Digital India founded with a long-term commitment and vision to bring world-class 4G networks to villages, towns, and cities across India," the release stated.