Aditya Birla group's Idea Cellular has signed a deal to acquire 40.8 per cent stake in Spice Communications for Rs 2,716 crore (Rs 27.16 billion).
Idea will benefit operationally by leveraging synergies with TMI which will be a significant shareholder of our company," Idea Cellular Ltd Chairman Kumar Mangalam Birla said.
The deal would mark Idea's entry into the wireless markets of Punjab and Karnataka, which account for 11 per cent of India's total wireless subscribers.
"The strategic move travels beyond Punjab and Karnataka. By the end of the year, the Idea yellow will increasingly colour the Indian landscape," Idea Cellular Ltd managing director Sanjeev Aga said.
The shares of Idea Cellular reacted positively and surged as much as 6.80 per cent over its previous close in a weak Bombay Stock Exchange. The scrip was last quoted at Rs 105.50, up 6.40 per cent on the BSE.