Idea-Vodafone merger: In 10 minutes AB Nuvo & Grasim add Rs 3100 crore in market cap

Exploratory merger talks between Idea and Vodafone had a positive impact on all the other Aditya Birla Group listed companies with the likes of Aditya Birla Nuvo and Grasim Industries both surging more than 5 per cent in a matter of 10 minutes, post Vodafone Plc confirmation on talks between the telecom players.

Aditya Birla Group holds a majority stake in the country’s third largest telecom player. Listed entities of Birla Group like AB Nuvo, Hindalco Industries and Grasim Industries hold 23.2; 6.34 and 4.75 per cent stakes, respectively.

Post the confirmation of the news pertaining to the merger talks, AB Nuvo surged about 6 per cent, thereby adding around Rs 950 crore to the market capitalisation of the company. Grasim Industries spikes 5 per cent, making investors wealthier by Rs 2150 crore in minutes.

The rival telecom players also welcomed the news as shares of Bharti Airtel and Reliance Communications jumped more than 10 per cent intra-day to hit respective highs for the month of January.

Telecom index is likely to be in focus in the coming days and weeks post confirmation from Idea and Vodafone on merger talks.