Telecom company Idea Cellular has called an ‘Extraordinary General Meeting’ (EGM) on June 26 to approve changing the name of ‘Idea Cellular Limited’ to ‘Vodafone Idea Limited’, as the firm nears completion of merger with Vodafone India.
“consent of the members be and is hereby accorded for change of name of the company from Idea Cellular Limited to Vodafone Idea Limited,” Idea Cellular said in a regulatory filing to the stock exchanges.
Idea and Vodafone India are in process of merging their businesses. According to official sources, the approval for merger by the Department of Telecom is in final stages. The merger, when it comes through, will create India’s largest telecom firm worth over $23 billion and is expected to intensify the telecom battle dominated by Reliance Jio and Bharti Airtel.
Besides, change in name, the EGM will also discuss raising of Rs 15,000 crore fund by the company through Non-Convertible Debentures (NCDs).
“consent of the Members be and is hereby accorded to the Board of Directors of the Company to offer or issue from time to time, Non-Convertible Securities including but not limited to NCDs, secured or unsecured, in one or more series or tranches aggregating up to an amount not exceeding Rs 15,000 crores,” the notice said.
Vodafone is expected to own 45.1 per cent, 26 per cent by Aditya Birla Group and Idea shareholders will own 28.9 in the combined entity. The merged entity will have around 43 crore mobile subscribers from Day 1 which translates to about 35 per cent of the market share.
In March this year, Kumar Mangalam Birla was named the non-executive chairman of the prospective combine. Balesh Sharma, currently the chief operating officer of Vodafone India, has been named as the CEO of the new entity.
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