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20
March 2017
Telecom
sector slipped, with Idea Cellular's stocks plunging by almost ten per cent on
Monday -- a day of major merger announcements in the telecom space.
At
closing, the scrip of the telecom major was down by 9.55 per cent to Rs 97.60
per share at the BSE, emerging as the worst loser of the day. The Total Investment & Insurance Solutions
Overall,
the S&P BSE telecom index, which opened at 1,268.30 points, closed at
1,251.19 -- down 13.99 points or 1.11 per cent. The Total Investment & Insurance Solutions
Telecom
giant Bharti Airtel remained a gainer, with its shares up 0.79 per cent to Rs
349.45 per scrip at the BSE. On the other hand, Reliance Communications was
down by 0.26 per cent to Rs 38.15 per share. The Total Investment & Insurance Solutions
In
one of the biggest mergers in the telecom space, Vodafone India and Aditya
Birla Group-promoted Idea Cellular announced the much-awaited amalgamation,
following which Vodafone will hold 45.1 per cent in the combined company.
"The
market did not take the news (of Idea Cellular merger with Vodafone India) well
with Idea shares losing 10 per cent in value and closing the day at Rs 97.60.
Analysts were unhappy with the structure of the deal as the joint entity will
continue to have high debt levels," Vijay Singhania, Founder and Director
of brokerage firm Trade Smart Online, told IANS.
"The
merger is not witnessing any cash inflows from either companies. Besides, the
deal price is around the current price of joint entity as reported in the
exchange disclosure. This leaves little room for appreciation," Singhania noted. The Total Investment & Insurance Solutions
In
another announcement, Reliance Communications has received approval of the
Competition Commission of India (CCI) for the proposed merger with Aircel.The Total Investment & Insurance Solutions
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