Idea Surges 12% on the back of positive news flows: Angel Broking

Views of Angel Broking:

"The stock of Idea Cellular surged by 12% on 15th March after the news that American Tower Company (ATC) was in talks to acquire the Towers Business of Idea cellular. Earlier, ATC had bought the towers business of Viom. The news that ATC top management had already met up with the Idea top brass on this acquisition, helped fuel further interest in the stock. The sale of the towers business to ATC will help Idea monetize some of its assets ahead of the proposed merger with Vodafone. It is expected that the Vodafone merger may be announced soon. In fact, Idea has already surged by over 50% in the last couple of months since the proposed merger with Vodafone was announced. Its recently launched Idea Select plan also aided sentiments.

However, Indian telecom space remains challenging with markets saturating, stiff competition from Jio and limited pricing power for service providers."

Shares of IDEA CELLULAR LTD. was last trading in BSE at Rs.112.9 as compared to the previous close of Rs. 103.05. The total number of shares traded during the day was 5893993 in over 27932 trades.

The stock hit an intraday high of Rs. 115.5 and intraday low of 103. The net turnover during the day was Rs. 655680599.

Source : Equity Bulls

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