NCLT-Ahmedabad Approves Idea Cellular and Vodafone India’s $23 Billion Merger Deal

The National Company Law Tribunal (NCLT)-Ahmedabad bench today approved the proposed merger of Idea Cellular and Vodafone India, meaning both the operators are now required to seek approval from Department of Telecommunications (DoT) once NCLT-Mumbai bench approves Vodafone’s merger request. The merger deal worth $23 billion was proposed back in March 2017 and is currently India’s largest M&A deal. Back at the time of announcing the merger, both the operators said that the deal would be completed in six quarters, but it is now expected to be completed much ahead of the expected time.


“The scheme is genuine, bona fide and in the interest of the creditors and the shareholders,” said the NCLT Ahmedabad bench. Vodafone India is yet to receive approval from NCLT-Mumbai bench. Both the telecom operators have already received approvals from SEBI, shareholders, Competition Commission of India (CCI). As stated, if DoT approves the merger, both the telcos can merge the operations.

If DoT approves the $23 billion deal, the merged entity will become India’s largest telco with over 35% market share and an excess of 400 million customers. Idea shareholders have already approved the proposed merger.

As per the merger, Vodafone India will get an implied enterprise value of Rs 82,800 crores and Idea Rs 72,200 crores. After the merger, Vodafone India will have 45.1% stake, whereas Idea Cellular will have 26 percent after paying Rs 3,874 crore cash for a 4.9 percent stake. And the remaining 28.9% will be held by other shareholders. The merger will be completed by March 2018.

Recently, it was reported that both the operators had formed a project management office as the nodal body headed by former CEO of Vodafone Romania Ravinder Takkar. They have already started the exercise to shortlist senior executives that will play key roles in the merged entity.

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16 Comments on "NCLT-Ahmedabad Approves Idea Cellular and Vodafone India’s $23 Billion Merger Deal"


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Chetan Malhotra
January 14, 2018 9:41 am 9:41 AM

I was reading somewhere an article about idea voda terms to be re thought following extreme capex crunch by both idea and voda following jio pricing war… It seems even after merger joint entity will cash starved. A huge capital infusion is required from promoters to run the show. Already capex towards network upgradation is LOW from both entity and laggered behind airtel. Customers are struggling because of same
I think the joint entity might be sold to either airtel or jio later

January 13, 2018 9:23 am 9:23 AM

Currently Idea is only suitable for basic 2G voice communication in Bombay circle. 4G speed is worst. I think they lounched 4G for just name sake.

January 14, 2018 10:51 am 10:51 AM

Same situation with airtel. Only Vodafone and Jio are viable there.

Lalit K
January 14, 2018 1:52 am 1:52 AM

Compliant Three times for speed , still getting 2mbps on 4g idea mumbai,


January 16, 2018 3:11 pm 3:11 PM

Use Vodafone/Jio in Mumbai!!!!!

Aircel The No.1 Network of India
January 12, 2018 10:12 pm 10:12 PM

Aircel don’t care whether they get merged or not, both of them gives less value and quality.

Sandeep Bansal
January 13, 2018 7:34 pm 7:34 PM

Such a poor fella!!!
Aircel is being forced to close down in 6 circles and might as well close down in many others this year, but still thinks Aircel is best!!!
God save him…

January 13, 2018 2:13 am 2:13 AM

Excuse me, who gives a crap about Aircel anymore? Let the promoter appear in court instead of hiding in Malaysia, then maybe I can respect the company a little more.

Aircel The No.1 Network of India
January 13, 2018 3:27 pm 3:27 PM

Aircel doesn’t need your certificate, Aircel is the best and will be the best.

January 15, 2018 12:55 pm 12:55 PM

Your company Aircel owners Maxis are thieves & hiding from appearing in court. If your company Aircel didn’t do anything wrong, then why not appear before court. Ask those maxis to appear in court to get clean or go to jail.

January 13, 2018 8:15 pm 8:15 PM

OK let Ananda Krishnan appear in court and say this. Why is he afraid? Worried about black cash?

January 13, 2018 12:53 am 12:53 AM

We don’t give a what AirCel thinks about the merger of Idea and Vodafone or any other operator. Solve your in-house problems first.

Aircel The No.1 Network of India
January 13, 2018 3:34 pm 3:34 PM

Aircel don’t have any issues, only avoid lovers are making baseless allegations about Aircel, because they know very well that Aircel is providing the best network with value offers which avoid can’t do whether it comes to network or value deals. So now you burn as much you can.

January 12, 2018 11:47 pm 11:47 PM

Sudhakar stop this trolling! for God sake

January 13, 2018 11:59 am 11:59 AM

I think he is not sudhakar, but someone trolling sudhakar in the name of AIRCEL.


January 13, 2018 9:22 pm 9:22 PM

haha who knows