The biggest merger in the Indian telecom space, the Vodafone-Idea merger, is inching closer and the Aditya Birla funded firm is clearing one hurdle after another. The latest being the company’s application in National Company Law Tribunal or NCLT seeking approval.
Idea today said it has filed an application NCLT after it got clearance from Security and Exchange Board of India or SEBI and Indian stock exchanges regarding the merger. The SEBI nod for the Vodafone-Idea merger came on 4 August and before that Idea Cellular had received the approval from Competition Commission of India as well.
“Following the receipt of approvals from Competition Commission of India on 24 July 2017 and the Stock Exchanges/SEBI on 04 August 2017 and in accordance with the terms thereof, Idea Cellular Ltd. (the Company) has yesterday filed an application before the National Company Law Tribunal, Ahmedabad Bench, for approval of the merger of Vodafone India Ltd. and Vodafone Mobile Services Ltd. with the Company,” Idea said in a statement today.
Idea had in January this year announced to have had talks with Vodafone for a possible merger.
The Vodafone-Idea merger is a result of Reliance Jio’s entry into telecom business and its disruptive trade practices. Jio started offering its services in September 2016 and within months all the incumbent telecom operators started feeling the heat.
Airtel, the largest operator in India, has been showing dismal financial results since then and Idea posted loss in Q3 of 2017, its first ever since the company’s IPO.