New Delhi: Shares of Idea Cellular plunged over 7 per cent on Monday following reports that the mega-merger deal of the company and Vodafone India may not meet the expected June 30 timeline.
The stock slumped 7.18 per cent to close at Rs 56.20 on BSE. During the day, it tanked 7.67 per cent to Rs 55.90. At NSE, shares of the company dived 7.18 per cent to end at Rs 56.20. The company's market valuation also fell by Rs 1,892.84 crore to Rs 24,502.16 crore.
In terms of equity volume, 22.21 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day. The mega-merger deal of Idea and Vodafone may not meet the expected June 30 timeline as the telecom department is looking to raise a fresh demand of around Rs 4,700 crore, a source said.
"Vodafone India had merged its all arms into one company and there are dues of around Rs 4,700 crore related to one-time spectrum charges (OTSC) on the company. DoT will ask Vodafone to either clear the dues or furnish bank guarantee before merger with Idea," an official source told PTI.
Both Idea and Vodafone were expecting the merger deal to create India's largest telecom company to be completed by June 30, 2018.