Shares of Idea Cellular rallied as Vodafone said it is in talks to merge its Indian operations with rival Idea Cellular in an all-share deal that could help the groups counter the fierce competition in the market.
In a short statement, Vodafone said it was in talks with Idea's parent, conglomerate Aditya Birla. It said any merger would involve Idea issuing new shares to Vodafone and would result in Vodafone deconsolidating Vodafone India.
Idea Cellular shares were up 27.19 per cent at Rs 98.95 on the BSE. On the NSE, the stock zoomed 27.18 per cent to Rs 99.20.
The stock headed for a seventh consecutive session of gains, its longest rally since a 10-session winning run in January 2015.
Talks to explore a merger have been “on for some time’’, a media report said, citing multiple sources.
Idea stock clocked a volume that is 2.4 times its 30-day average.