The new entity born out of the ongoing merger of Idea Cellular and Vodafone India is proposed to be named as Vodafone Idea, the Aditya Birla Group firm said on Friday. Following the proposed merger, the new combined entity, that is in final stages of merger, will establish country’s largest telecom company in terms of subscribers, overtaking Bharti Airtel. “… consent of the members be and is hereby accorded for change of name of the company from “Idea Cellular Limited” to “Vodafone Idea Limited”,” Idea Cellular said in an exchange filing. The Extraordinary General Meeting (EGM) of the company will be held on June 26 so as to decide the change in the name of the company and many other issues.
The approval for merger by the Department of Telecom is in final stages, PTI reported citing unidentified official sources. Post issuance of the fresh certificate of incorporation by the Registrar of Companies, the old name “Idea Cellular Limited” will be replaced as “Vodafone Idea Limited”.
In the combined entity, Vodafone is expected to own 45.1 percent, Aditya Birla Group will hold 26 percent and Idea shareholders will own 28.9 percent. The new combined entity will have around 430 million mobile subscribers from Day 1. In the EGM scheduled on June 26, discussion around raising of Rs 15,000 crore fund by the company through NCDs will also be done.
“…consent of the Members be and is hereby accorded to the Board of Directors of the Company…to offer or issue from time to time, Non-Convertible Securities including but not limited to NCDs, secured or unsecured, in one or more series or tranches aggregating up to an amount not exceeding Rs 15,000 crores,” the notice said.
An approval will also be sought from the EGM to raise fund on private placement basis within one year from the date on which resolution is passed. – Financial Express