Voda Idea ! ~ Share Price Bonanza for Idea Cellular on Merger Talks with Vodafone
Given the cut throat competition in the Telecom Provider space,Consolidation has been inevitable for quite some time & with just a handful of players it was not rocket science to predict who would make the first move
Insider Play ?
Obviously Insiders knew of the preliminary talks and their friends in the Media were fed the news to facilitate the likes of Economic Times splashing a Vodafone & Idea Merger scenario in their print edition yesterday
Then it was the Stock Channels turn to take credit as Vodafone confirmed such talks yesterday
Ironically neither BSE nor NSE Authorities received any pro-active notification from the listed Birla Group Company Idea Cellular.It was on the Exchanges re-actively seeking a clarification did the company send one to confirm they were in preliminary talks with Vodafone
But look at the recent chronlogical events that prefaced yesterdays drama & draw your own conclusions
August 23,2016 ~ Idea Cellular calls all such merger speculation baseless and absolutely false & sees it’s share price correct back into the 90’s after the surge past Rs 100 …It drifted even lower below Rs 70 in the last quarter and then regained to remain in the Rs 70 to Rs 78 range till Friday ,January 27,2017
January 11,2017 ~ Idea Cellular notified the exchanges that Q3 FY 17 December 2016 results will be declared on January 23,2017.
January 13,2017 ~ Idea Cellular notifies The Shareholding as on December 31,2016.Pilani Investments,a Birla Holding Company picked up 8168500 shares or a 0.23% equity stake in Idea Cellular in the quarter ended December 2016 taking the Promoter Birla Group stake to 42.45%
January 19,2017 ~ Idea Cellular notified again that the Q 3 FY 17 Results declaration has been postponed and a new date will be conveyed
Yesterday,January 30,2017 ~ Economic Times carried the Merger Scenario forcing the Exchanges to seek Clarification from Idea Cellular.Vodafone had already confirmed to the Media in the morning itself that talks indeed were being held
Idea Cellular Share Price simply rocketed over 25% to cross Rs 100 from the Friday Close of @ Rs 78 before closing at Rs 98 yesterday, .It also is in F & O Segment with a lot size of 7000
Today,Tuesday,January 31,2017 it has surged another nearly 20% to record a high of Rs 118.90 & as I blog this @ 1.30 pm it’s at @ Rs 116 with a Market Cap now @ Rs 42000 crs from under Rs 30000 crs just two days ago on Friday,January 27,2017