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Idea Cellular gets DoT nod to raise FDI limit to 100 pct

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Mumbai | Published: June 5, 2018 4:52:10 AM

The approval is for total foreign investment of up to 100% in Idea Cellular, and total indirect FDI in its relevant subsidiaries — Aditya Birla Telecom and Idea Cellular Infrastructure Services.

Idea Cellularf, DoT, FDI limit, 100 per centAditya Birla Group company Idea Cellular said on Monday that it has received approval from the Department of Telecommunications (DoT) on its application to increase FDI limit in the company to 100% from the current 67.5%.

Aditya Birla Group company Idea Cellular said on Monday that it has received approval from the Department of Telecommunications (DoT) on its application to increase FDI limit in the company to 100% from the current 67.5%. Now, for the final merger to happen, the approval of the DoT is required.
The approval is for total foreign investment of up to 100% in Idea Cellular, and total indirect FDI in its relevant subsidiaries — Aditya Birla Telecom and Idea Cellular Infrastructure Services.

“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 Sebi, NSE, BSE, CCI and NCLT Mumbai and NCLT Ahmedabad,” the company said in its filing. Last week, the company sent a notice to the stock exchanges informing about an extraordinary general meeting (EGM) of the shareholders seeking consent for change of name of the company from ‘Idea Cellular Limited’ to ‘Vodafone Idea Limited’.

The company also sought shareholders consent to raise up to Rs 15,000 crore through secured or unsecured non-convertible securities. The EGM will be held on June 26, 2018 in Gandhinagar, Gujarat.
The country’s second and third largest mobile operators — Vodafone India and Idea Cellular — had announced in March 2017 the contours of their $23-billion merger deal, thereby creating a combined entity with total revenues at over Rs 80,000 crore, 400 million customers, 35% subscriber market share and 41% revenue market share.

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.

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