Anagram Research has given a neutral rating to Idea Cellular in its June 27, 2008 research report. "As telecom sector is getting crowded by new entrants, we are witnessing consolidation among the existing players. The recent merger between Spice – Idea is a move in this direction. The deal is positive for the Shareholders of Spice as the deal struck at a substantial premium as compared to prevailing market price and the acceptance ratio in the open offer is also too high."

"As the cash infusion of Rs 4500 crore will help Idea to make its balance sheet clean and will provide a room for further expansions across India leading to pan India presence. But for Idea shareholders deal will be EPS dilutive in the near term because of the dilution and loss in Spice. But going forward as Idea moves towards Pan India presence, we think that the valuation multiples for the company can improve going forward," says Anagram's research report.

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