Anil Ambani-led Reliance Communications today said that it has received consent from Exchange Board of India (SEBI), BSE Ltd (BSE) and National Stock Exchange of India Ltd (NSE) for the proposed Scheme of arrangement for demerger of the wireless division of the company into Aircel Ltd. and Dishnet Wireless Ltd.
RCom has filed an application with the National Company Law Tribunal (NCLT), Mumbai Bench for the approval.
The company further said that proposed transaction is subject to other necessary approvals.
On September 14 last year, RCom has announced its merger plan with Maxis Communications Berhad ("MCB"), promoters of Aircel Limited ("Aircel").
The RCOM-Aircel combination will create a strong operator clearly ranked amongst India's top 4 telcos by customer base and revenues, also ranking amongst the top 3 operators by revenues in 12 important circles.
The merged company will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands, and will enjoy enhanced business continuity through validity of spectrum holdings till 2033-35.
The new entity will be one of India's largest private sector companies with an asset base of over Rs. 65,000 ($9.7 billion) and net worth of Rs. 35,000 crore ($5.2 billion).
Indian mobile services market - the world's second largest after China - has been in a midst of consolidation drive, intensified by the disruptive entry of newcomer Reliance Jio.
Last month, telecom operator Bharti Airtel announced it will acquire Norwegian Telenor's India unit.
Vodafone India and Idea are working on merging their businesses to create the biggest telecom operator in the country with about $12 billion in sales.