Idea Cellular Ltd fell as much as 14.57 per cent, reversing earlier gains of 14.25 per cent, after the telecom services provider said it would merge with Vodafone Plc's Indian operations.

Although traders had initially reacted positively to the news, doubts about Idea's valuations after the merger sent shares downward, according to traders.

The stock was trading lower by 8.94 per cent at Rs 98.25 apiece on the BSE at 11.35 am. In early trade, it fell to a low of Rs 92 per share, down by over 14 per cent compared to the previous close.

On the National Stock Exchange, the stock was trading down by 9.3 per cent at Rs 98.05 after touching a low of Rs 92.35.

Over 12 crore shares of Idea were traded on NSE in the morning session.

Idea Cellular informed the bourses that its board has approved the “scheme of amalgamation of Vodafone India Limited (VIL) and its wholly owned subsidiary Vodafone Mobile Services Ltd (VMSL) with the company''.

“The implied enterprise value is Rs 82,800 crore ($12.4 billion) for Vodafone India and Rs 72,200 crore ($10.8 billion) for Idea,” a joint statement by the companies said.

After completion of the merger, Vodafone will own 45.1 per cent of the combined company, Idea will have 26 per cent stake while the rest will be owned by public shareholders.