Shares of Idea Cellular were up 4.49% at Rs. 57 a piece in early morning trading hours on Tuesday, on the back of telecom department giving conditional nod to its merger with Vodafone India.
Department of Telecommunications (DoT) on Monday approved the largest M&A deal in the sector, which will displace Bharti AirtelNSE 0.64 % from the No. 1 spot after over 16 years. Conditions for approval – given over a year after the deal was announced in March 2017 – includes an upfront payment of Rs 7,268 crore. Demand is split between a bank guarantee of Rs.3,342 crore to cover what Idea owes on account of one-time spectrum charges and cash of Rs.3,926 crore by Vodafone towards the market price for non-auctioned airwaves,.