Idea-Vodafone merger: SEBI asks for the merger details before May 22

Expressing its reservations on the Idea-Vodafone merger, market regulator SEBI asked the companies to share the details of the merger in order to scrutinise the significant telecom deal.  
  
The set of details of the mergers asked by SEBI includes compliance with DoT norms, share transaction agreement, along with the methodology used to arrive at the share price for acquisition.
           
SEBI has directed the companies to answer the queries by May 22, 2017.

In order to accomplish the merger process companies are required to acquire ‘no objection’ on the merger by the market regulator post which the merger will require to get an approval from National Company law Tribunal (NCLT) for the completion of the process.  

According to the established arrangements, Vodafone will sell 9.5 per cent of its additional stake for Rs 130 per share to Aditya Birla Group on merger. On an aggregate, Vodafone will hold 50 per cent of the stake, while Aditya Birla Group will hold 21 per cent.

However, post merger, Vodafone will shell of more stakes to Aditya Birla Group, with the later’s stakes increasing to 26 per cent and the former’s decreasing to 45.1 per cent.