Idea Cellular lines very busy

Idea Cellular is very active today. The stock closed at Rs.175.55, opened at Rs.176, went on to hit an intra day high at Rs.176.95 and soon hit the days low at Rs.174.55 and now it has inched back into the green at Rs.176.10.

The stock is in news after the company stated that it has received a government notice asking for Rs.600 crore in penalties for allegedly violating rules when it acquired a smaller rival five years ago. The company is not taking this down lying down; it is now preparing to challenge the government order.

Idea had bought Spice Communication in 2008 and since then, it operates in two more zones as part of its operations. The Telecom ministry has alleged that Idea has violated rules as it held permits in zones where Spice had operations. As per the rules then, one company cannot own 10% or more in a competing carrier, in the same zone.  Idea has reiterated that it has done no wrong as this merger was approved by the Indian courts.