Idea Cellular Gains 6% on NCLT Approval For Idea-Vodafone Merger

Foreign research house JPMorgan has maintained underweight call on Idea Cellular with a target of Rs 50 per share.

Shares of telecom firm Idea Cellular gained more than 6 percent in the morning trade on Friday post the company received NCLT approval for Idea-Vodafone merger.

NCLT (National Company Law Tribunal) has approved the merger of Idea Cellular and the Indian unit of Vodafone Group Plc, reported CNBC-TV18, quoting Sources.

Foreign research house JPMorgan has maintained underweight call on Idea Cellular with a target of Rs 50 per share.

It believes that that post-merger, math does not look good unless we see revenue recovery.

Meanwhile, post-merger opex/capex reduction assumptions can get undermined if RJio maintains its current aggressive pricing and market-share posture beyond FY19, it added.

Deutsche Bank has maintained buy on Idea Cellular, while it cut target price to Rs 100 from Rs 105 with a potential upside of 101 percent.

According to Deutsche Bank, fight is for next billion eyeballs and content is the new battle ground

At 09:25 hrs Idea Cellular was quoting at Rs 51.40, up Rs 1.55, or 3.11 percent on the BSE. – Money Control