The approval is for total foreign investment up to 100 percent in Idea Cellular Ltd., and total indirect FDI in its relevant subsidiaries – Aditya Birla Telecom Ltd and Idea Cellular Infrastructure Services Ltd.
The EGM of the company will be held on June 26 to decide the change in the name of the company.
The most active Nifty stocks were PC Jeweller, down over 3 percent, and Bharti Airtel, down 6 percent. Titan Company, Asian Paints and Sun Pharma were the other active stocks.
126 stocks hit a new 52-week low. These included names like Ajanta Pharma, Ambuja Cements, Amtek Auto, Can Fin Homes, HUDCO, Indo Count Industries, Idea Cellular, Mahanagar Gas, OBC, Power Finance Corporation, PNB, Rural Electrification Corporation, Strides Shasun and Union Bank.
Edelweiss recommended hold rating on Idea Cellular with a target price of Rs 78 in its research report dated April 30, 2018.
ICICI Direct recommended hold rating on Idea Cellular with a target price of Rs 63 in its research report dated May 02, 2018.
The market breadth was in favour of the advances with 834 stocks advancing while 806 declined and 403 remained unchanged. On the other hand, in the BSE, 1187 stocks advanced and 1200 declined and 109 remained unchanged.
Motilal Oswal is bullish on Idea Cellular has recommended buy rating on the stock with a target price of Rs 85 in its research report dated April 30, 2018.
101 stocks hit new 52-week low including names like Amtek Auto, Balrampur Chini, BEL, HCC, IDFC Bank, Reliance Power, Suzlon Energy, Chennai Petro, HDIL, Idea Cellular, HUDCO and Kwality among others.
"We do not rule out market share loss in the next few quarters but also expect recovery in FY20. With positive news flow, reduction in losses, we can expect a target of Rs 90 by FY19 end," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
The proposal assumes significance against the backdrop of pending merger of Idea Cellular Ltd and Vodafone India to form the country's largest telecom operator.
According to the bulk deal data available with BSE, NVB PLC disposed of 3.92 crore shares, amounting to 0.90 per cent stake in the telecom operator.
The DoT will insist on bank guarantees for OTSC dues because of the telecom mergers and acquisitions rules currently in place, even though license fee, SUC and OTSC are legally challenged
"Alka Bharucha, Independent Director on the Board of Idea Cellular Limited, has tendered her resignation due to personal reasons with effect from 31st March, 2018," Idea said in a BSE filing.
Akshaya Moondra, the current chief financial officer at Idea, will become the finance chief at the combined firm, the companies said separate filings.
Announcing the top deck for the merged entity, a regulatory filing by Idea Cellular said that Balesh Sharma (currently Chief Operating Officer of Vodafone India) will be the CEO. He will be responsible for the combined business strategy and its execution as well as driving integration.
After the recent correction, valuations of Indian market have come down to a reasonable level which should give motivation to investors to accumulate quality stocks on declines.
After a setback from Union Budget 2018, the domestic market has shifted focus into the global volatility which is turning cautious due to premium valuation, increase in interest rate and risk of de-globalisation.
The official said the Cabinet has approved the two key measures to facilitate investments and consolidation in the sector, which include restructuring of deferred payment liabilities of telecom service providers for spectrum and revision of limit of spectrum holding caps.
The company said that VoLTE services on its high-speed 4G network will enable users to simultaneously have un-interrupted internet experience while using voice services.
"The capital raising committee of the company at its meeting today approved the closure of the issue for the QIP," Idea said in a regulatory filing.
"The Board of Directors at its meeting today has accorded final approval for issuance of equity shares for an amount not exceeding Rs 3,500 crore by way of QIP to the eligible investors...," Idea Cellular said in a BSE filing.
As a result of the preferential allotment, the aggregate shareholding of the promoter group in Idea has increased from 42.4 to 47.2 per cent.
Going by the number of subscribers and revenue market share, this merger will give birth to India’s largest mobile phone operator. The deal is expected to conclude before July 2018.
The last step is to get the DOT approval in terms of merging the licenses etc, said Sunil Sood, MD & CEO, Vodafone India