Aditya Birla Group said that Vodafone India and Idea Cellular have completed the merger to create the country's largest telecom company with 408 mn active subscribers and a revenue market share of 32.2%. A new board has been constituted for the merged entity "Vodafone Idea Ltd' with 12 directors (including six independent directors) and Kumar Mangalam Birla as its Chairman. The board has appointed Balesh Sharma as the CEO, the companies said in a joint statement. "The merger is expected to generate Rs. 14,000 crore annual synergy, including opex synergies of Rs. 8,400 crore, equivalent to a net present value of approximately Rs. 70,000 crore," the statement said.
The net debt of the company stood at Rs. 1,09,200 crore on June 30, 2018. "The equity infusion of Rs. 6,750 crore at Idea and Rs. 8,600 crore at Vodafone, coupled with the monetization of standalone towers of both companies for an enterprise value of Rs. 7,850 crore, provides the company with a strong cash balance of over Rs. 19,300 crore post-payout of Rs. 3,900 crore to the Department of Telecom (DoT)," the statement said.