June 2: Idea Cellular Ltd is set to hold an extraordinary general meeting on June 26 where the company will seek the approval of the stakeholders to raise funds of up to Rs 15,000 crore and to rename the company as Vodafone Idea Ltd. The company is currently in the final phases of closing the merger with Vodafone Ltd.
According to reports, the name change will require the approval of the Union Government. Apart from this, the company also requires approval to raise funds up to Rs 15,000 crore on private placement basis through non-convertible securities in one or more tranches. The details regarding the use of funds have not been specified by the company.
Both the companies are awaiting final approval for the merger from the Department of Telecommunications. Approval from the National Company Law Tribunal, the Competition Commission of India and the Securities and Exchange Board of India were earlier received by the companies.
With the merger, the company will become the world’s second largest and India’s largest telecom firm in terms of subscribers. Bharati Airtel Ltd is the current largest telecom firm in India. Through the merger, the company intends to dominate the Indian telecom market where Mukesh Ambani owned Reliance Jio Infocomm Ltd is in a leading position. Reliance Jio recently disrupted the market by offering free voice calls and low data tariffs for its subscribers.
Earlier this year, the companies had outlined a leadership team with Kumar Mangalam Birla, Aditya Birla Group chairman as the non-executive chairman of Vodafone- idea combine. The current chief operating officer of Vodafone India, Balesh Sharma has been entitled the role of the chief executive officer of the upcoming entity. Balesh Sharma will be responsible for the combined business’s strategy, its execution and integration.
From the Idea family, Akshaya Moondra, current chief financial officer will make the CFO of the merged entity while Ambrish Jain, current deputy managing officer, will be appointed as the COO. Both of them will have to report to Balesh Sharma, CEO of the merged entity.