NCLT stamped on Vodafone-Idea Merger

31 Aug
NCLT stamped on Vodafone-Idea Merger

The National Company Law Tribunal (NCLT) Kolkata bench on Thursday had approved the merger of Idea Cellular and Vodafone India, clearing the last hurdle to allow the creation of India's largest mobile phone company with the most number of subscribers and revenue share, displacing Bharti Airtel which has held the top spot for some 15 years. 

 

Today, we have created India’s leading telecom operator. It is truly a historic moment. This is not just about creating a large business, it is much more. It is about the compelling vision of empowering and enabling a new India, pivoted on the aspiration of the youth of our country. Vodafone Idea, a formidable company of international repute, scale and standards will drive our Honorable Prime Minister’s ‘Digital India’ vision, said Kumar Mangalam Birla.

 

We have created the ‘World’s second largest’ and ‘India’s Numero Uno’ player in the telecom mobility space.  It is truly an epochal moment, Kumar added.

 

The NCLT approval is the final clearance needed before registration of the new merged entity, Vodafone Idea Limited with the VMSL (Vodafone Mobile services Ltd), VIL (Vodafone India Ltd) and Idea Celluer Limited.

 

The new board will be constituted after registration with the Registrar of Companies (RoC).

 

The largest merger in the sector now leaves three major players — Bharti Airtel, Reliance Jio Infocomm and Vodafone Idea — to fight it out for over a billion subscribers in a market that is seeing surging demand for data amid rock-bottom tariffs as the country moves to 4G from 3G and smartphones become more affordable.