Idea comes off 2% on DoT 'no' to dues revisit
NEW DELHI: Idea Cellular declined 2 per cent on Wednesday after DoT rejected its plea along with that of Vodafone India to revisit their dues.
The Department of Telecommunications said its numbers are fine and India’s second- and third-largest telcos should pay up to get a final seal of approval on their merger at the earliest.
The stock fell 2 per cent to hit a low of Rs 51.40 on the BSE.
Under a conditional merger nod given two weeks ago, DoT demanded Rs 7,268 crore upfront payment as dues. It is split between a bank guarantee of Rs 3,342 crore on account of one-time spectrum charges claimed from Idea, and cash payment of Rs 3,926 crore towards market price for non-auctioned airwaves held by Vodafone India.
The completion of the deal has already crossed the deadline of June-end set by the two companies. Among other conditions, Idea needs to replace Vodafone’s bank guarantees worth Rs 6,452 crore held by DoT with its own.
The Department of Telecommunications said its numbers are fine and India’s second- and third-largest telcos should pay up to get a final seal of approval on their merger at the earliest.
The stock fell 2 per cent to hit a low of Rs 51.40 on the BSE.
Under a conditional merger nod given two weeks ago, DoT demanded Rs 7,268 crore upfront payment as dues. It is split between a bank guarantee of Rs 3,342 crore on account of one-time spectrum charges claimed from Idea, and cash payment of Rs 3,926 crore towards market price for non-auctioned airwaves held by Vodafone India.
The completion of the deal has already crossed the deadline of June-end set by the two companies. Among other conditions, Idea needs to replace Vodafone’s bank guarantees worth Rs 6,452 crore held by DoT with its own.