NEW DELHI: Shares of Idea Cellular surged over 7 per cent today after the company made joint payment, along with Vodafone, to the Department of Telecom for merging their mobile business.
The stock rose 7.31 per cent to settle at Rs 56.50 on BSE. Intra-day, it jumped 17.75 per cent to Rs 62. At NSE, shares of the company zoomed 7.32 per cent to close at Rs 56.40.
Led by the sharp gain in the stock, the company's market valuation rose by Rs 1,679.48 crore to Rs 24,633.48 crore.
On the equity volume front, 60.20 lakh shares of the company were traded on BSE and over 7.7 crore shares changed hands at NSE during the day.
Inching closer to formation of the country's biggest telecom operator, Idea Cellular and Vodafone have made joint payment of Rs 7,248.78 crore under protest to the Department of Telecom for merging their mobile business.
The merger is expected to give breather to both debt-ridden firms Idea and Vodafone, from cut-throat competition in the market where margins have hit rock bottom with free voice calls.
"Idea Cellular and Vodafone have made payment under protest as demanded by the DoT for the merger. Rs 3,926.34 crore have been paid in cash and bank guarantee of Rs 3,322.44 crore have been furnished," an Idea Cellular official confirmed the development.