Idea Cellular stocks rally nearly 14%

Shares of Idea Cellular rallied nearly 14 per cent as the company has unveiled a plan to raise up to Rs 6,750 crore ahead of its merger with Vodafone.

The stock after a positive opening jumped 12.91 per cent to Rs 118 on the BSE. On the NSE, shares of the company climbed 13.72 per cent to Rs 118.90.

Idea Cellular had yesterday unveiled a plan to raise up to Rs 6,750 crore which will alter the shareholding pattern of the company and have a bearing on its merger agreement with Vodafone.

The board of Idea Cellular has approved raising about Rs 3,250 crore from entities under the promoter Aditya Birla Group (ABG) and constituted a committee to evaluate potential routes for raising further capital of up to Rs 3,500 crore.

In a separate statement, Vodafone Group said that as a consequence of the change in shareholding in Idea post raising of capital, the two parties have agreed that ABG will buy a minimum of 2.5 per cent of the merged entity from Vodafone for Rs 1,960 crore.