Idea Cellular, the country's leading telecom operator, has approved the name of Vodafone Idea Limited for the company formed by the merger of Vodafone-Idea. Also, the plan to raise Rs 15,000 crore in the company's General Meeting was also approved.
According to the agenda, the new name put before the shareholders will be effective only after the completion of the merger process for both the companies. In the information sent to the Bombay Stock Exchange (BSE) Bombay, the company has said that the issue of non-convertible securities was approved on the basis of changes in name of the company and private placement in the General Body. Idea and Vodafone are going to merge their businesses. Official sources say the approval for the merger by the Department of Telecommunications is in the final stages.
However, it has also come to light that the merger process of these two companies may be delayed by the deadline of June 30, because the Department of Telecommunications (DOT) is considering demanding 4,700 crores from Vodafone before the completion of this deal.
Chairman Kumar Mangalam Birla has been named as the new company's new executive chairman, though he was not present during this meeting. This meeting took place in the presence of Idea MD (Managing Director) and CEO Himanshu Kapania. Significantly, the merger of these two companies is being considered as the result of a tough competition from the new entry of telecom sector Reliance Jio.