New Delhi, Mar 21 (PTI) Continuing to fall for the second

straight session today, Idea Cellular stock plunged nearly 8

per cent after it agreed to merge with Vodafone India to

create the country’s largest mobile phone operator worth more

than USD 23 billion.

Even after a positive opening, the stock failed to hold

on the momentum and lost 7.63 per cent to Rs 90.15 as the

trade progressed on BSE.

On NSE, shares of the company tanked 7.77 per cent to Rs

90.10.

In the previous session also, the stock had lost nearly

10 per cent.

The British firm will own 45.1 per cent of the merged

entity while the Aditya Birla group, Idea’s parent company,

will own 26 per cent after paying Rs 3,874 crore cash for a

4.9 per cent stake, the two firms announced at a press

conference yesterday.

The remaining 28.9 per cent will be held by other

shareholders.

The Idea-Vodafone merger will create a strong player, but

multiple challenges from the deal, including breach of

spectrum holding and revenue marketshare cap, will have to be

resolved in a fixed timeframe, ICRA said yesterday.

Analysts are of the view that the competition in the

industry is unlikely to subside in the medium term despite the

mega merger.

This is published unedited from the PTI feed.