Idea and Vodafone made a joint announcement regarding the completion of their merger as the two telecom giants got the clearance from the National Company Law Tribunal (NCLT). After the approval, Idea Cellular and Vodafone have emerged as the single largest player in the telecom industry, displacing Bharti Airtel and acquiring the market share of about 32.2% with 408 million active users.

Idea Cellular said in the regulatory filing, “We wish to inform you that pursuant to filing of the NCLT orders with the relevant Registrars of Companies on 31st August 2018, the Scheme has become effective on even date and the merger of VMSL (Vodafone Mobile Services Ltd)and VIL (Vodafone India Ltd) with the Company has been completed.”

The statement released by the company also said that the merger is expected to generate Rs. 14000 crores annual synergy, Rs. 8400 crore opex synergies, equivalent to a net present value of approximately Rs. 70,000 crore.

The statement also said, “The equity infusion of Rs 6,750 crore at Idea and Rs 8,600 crore at Vodafone, coupled with monetization of standalone towers of both companies for an enterprise value of Rs 7,850 crore, provides the company a strong cash balance of over Rs 19,300 crore post-payout of Rs 3,900 crore to the Department of Telecom (DoT).”

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