Videocon Industries share price surged as much as 9.82 per cent on Thursday after the company informed BSE that Idea Cellular has entered into agreement with Videocon Telecommunications for acquiring right to use spectrum of Gujarat and Uttar Pradesh (West) for Rs 3,310 crore. Videocon Telecommunications is the subsidiary of Videocon Industries.
At 2.09 pm, the share price of Videocon Industries was trading 4.91 per cent up at Rs 136.70. The scrip opened at Rs 142 and had touched a high and low of Rs 143.10 and Rs 136, respectively, in trade so far.
Later, the share price of Videocon Industries closed 4.14 per cent up at Rs 135.70. Sensex settled the day 0.71 per cent up at 25,958.
Idea Cellular intends to use this acquired spectrum for launch of 4G (LTE) Mobile Broadband Services in the service areas of Gujarat and Uttar Pradesh (West). Along with the right to use spectrum, Idea will also be taking over the outstanding liability of Videocon, which it has to pay to the government for these sets of airwaves.
Videocon had acquired spectrum in 1,800 Mhz band, known as 2G spectrum, in these two service areas for a total of Rs 1,329 crore in November 2012 and made upfront payment of Rs 438.57 crore to the government.
The promoters holding in the company stood at 65.60 per cent, while institutions and non-institutions held 11.13 per cent and 23.27 per cent respectively.
(With inputs from PTI)