After signing agreements back in March last year, Vodafone India and Aditya Birla Group’s telecom arm Idea Cellular have announced that the merger has been completed. Idea Cellular has been renamed as ‘Vodafone Idea Limited’ and the service provider has subscriber base of over 408 million (as of June 2018) with 1 RMS in 9 circles, broadband network of 340,000 sites, and widest distribution reach with 1.7 million retail outlets. With 1850 MHz of total spectrum holding, over 200,000 unique GSM sites and ~235,000 km of fibre, the merged company offers superior voice and broadband connectivity across the country, covering 92% of the population and reaching nearly 500,000 towns and villages. Merger is expected to generate Rs. 140 billion annual synergy, including opex synergies of Rs. 84 billion, equivalent to a net present value of approximately Rs. 700 billion. The equity infusion of Rs. 67.5 billion at Idea and Rs. 86 billion at Vodafone coupled with monetization of standalone towers of both companies for an enterprise value of Rs. 78.5 billion, provides the company a strong cash balance of over Rs. 193 billion post payout of Rs. 39 billion to the DoT. Additionally, the Company has an option to monetise an 11.15% stake in Indus, which ...

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