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| Exchange Disseminated Time 29/04/2016 14:22:48 | Idea Cellular Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 28, 2016, have taken note of the approval of a draft Scheme of Amalgamation by the board of directors of Idea Mobile Commerce Services Limited ('IMCSL’), a wholly owned subsidiary of the Company. The Scheme of Amalgamation contemplates the merger of IMCSL with Aditya Birla Idea Payments Bank Limited (‘ABIPBL’), an entity which has been recently incorporated, wherein Aditya Birla Nuvo Limited (a Promoter of the Company) holds 51% equity and the balance 49% equity is held by the Company.
ABIPBL will be applying to the Reserve Bank of India for grant of Payments Bank license in due course.
For the year ended March 31, 2016, IMCSL had revenues of Rs. 72.10 million, contributing ~ 0.02% of the consolidated revenues of the Company. The net worth of IMCSL as on March 31, 2016 is Rs. 14.67 million comprising miniscule percent of Company’s net-worth.
Upon completion of merger, ABIPBL will be issuing equity shares to the Company in lieu of its existing shareholding in IMCSL. Following completion of the merger of IMCSL into ABIPBL, the Company will continue to hold 49% equity in ABIPBL. The proposed amalgamation is expected to take around 6 to 9 months and shall be subject to all requisite approvals. |
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