DOT is expected to lay down conditins that Idea cellular would have to submitt bank guarantee of Rs 2100 crore. as one-time spectrum charge (OTSC)
Why is this important?
Estimates suggest the merged entity, which will have a market leading 420 million customers and over 37% revenue market share. Idea has called shareholder’s meeting to approve the new name of the merged entity vodafone idea ltd. and raising of Rs 15000crs.
How stock to be impacted?
Vodafone Idea will have issues of breach in customer market share and revenue market share in some circles, which they will have to bring down below the 50% mark in one year.
Idea Cellular (CMP 62.50, M. Cap 272.73B, FY20 -11.2PE)