New Delhi: Shareholders of telecom operator Idea Cellular have approved the scheme relating to the merger of its mobile business with Vodafone India, a regulatory filing showed.
Over 99 percent of Idea shareholders voted in favour of the merger at the shareholders' meeting on 12 October, 2017, the filing by the Aditya Birla group firm stated on Friday.
Both telcos have approached the National Company Law Tribunal (NCLT) seeking its nod. In the next step, they need a final approval from the Department of Telecom.
The meeting of the Idea shareholders was convened after directions of the NCLT.
Earlier this year, Vodafone India and Idea Cellular had agreed to merge their operations to create the country's largest telecom operator worth of more than $23 billion with a 35 percent market share.
The combined entity of Vodafone India and Idea Cellular, which are currently India's number 2 and 3, respectively, would dislodge Bharti Airtel to counter the fierce price war in the world's second-largest telecom market.
The deal gives Vodafone India an implied enterprise value of Rs 82,800 crore and Idea Rs 72,200 crore.
Post completion of the deal, the British firm will own 45.1 percent stake in the merged entity while the Aditya Birla group, Idea's parent, will have 26 per cent after paying Rs 3,874 crore cash for a 4.9 per cent stake.
The remaining 28.9 percent will be held by other shareholders.
Stock of Idea traded at Rs 79.45, up 6.64 percent from its previous close, in the afternoon session.
Updated Date: Oct 13, 2017 16:55 PM