Idea gets DoT approval to increase FDI limit to 100% from 67.5%

GANDHINAGAR | MUMBAI | RAJKOT – Idea Cellular receives DoT (Department of Telecom) approval for increase in FDI limit to 100%, the company filing to the exchanges said.

Idea Cellular Ltd. has received approval on its application to increase Foreign Direct Investment (FDI) limit in the company to 100%, from the current 67.5%, from the Department of Telecom (DoT) today.

The approval is for total foreign investment upto 100% in Idea Cellular Ltd., and total indirect FDI in its relevant subsidiaries – Aditya Birla Telecom Ltd. and Idea Cellular Infrastructure Services Ltd.

The FDI approval is a major milestone in the merger process of Vodafone India with Idea Cellular, and follows other statutory approvals already received from the SEBI, NSE, BSE, CCI and NCLT Mumbai and NCLT Ahmedabad.

The merger of Vodafone India with Idea Cellular is in the final leg of regulatory approvals and is expected to complete in H1CY18, subject to the final approval from the DoT.

Idea Cellular Limited is the third largest wireless operator by subscribers in India with a Revenue Market Share (based on AGR) of approximately 17.1% of the Indian mobile telecommunications services industry (excluding wireline revenue for Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited) for the Q3FY18.

Idea is listed on National Stock Exchange (NSE), and the Bombay Stock Exchange (BSE) in India.

Idea is part of the Aditya Birla Group, which is one of the largest business groups in India. The Aditya Birla Group is a conglomerate with operations in 35 countries and has business interests in, among others, mobile telecommunications, financial services, metal and mining, cement, carbon black, textiles, garments, chemicals and fertilizers sector.

Investors and Traders somehow did not reciprocate strongly to the development, as Idea shares opened in Red Zone (on negative counters) traded flat during the trading session on Tuesday and ended in Red Zone, on the Indian bourses.