Idea Cellular stocks dip 6% in intraday trade on Bombay Stock Exchange (BSE), following a report indicating that the telecom department may raise a fresh demand of Rs 4,700 crore ahead of Idea-Vodafone proposed merger.
This is expected to delay the proposed merger between UK-based Vodafone and India’s third-largest telco Idea Cellular.
Vodafone India dues stand at around Rs 4,700 crore related to one-time spectrum charges (OTSC) on the company. Department of Telecom (DoT) will ask Vodafone to either clear dues or furnish bank guarantee before merger with Idea, a PTI report quoting source Sunday said.
Both Idea Cellular and Vodafone India were expecting to conclude the merger by the mid of 2018, to create India's largest telecom company, replacing market-leader Bharti Airtel.