Share prices of Idea Cellular Ltd., rose as much as 5 percent intraday, the highest in the last one month.
The stock is close to its 52-week high and it is trading at volumes more than one time its 2-day moving average.
The third-largest telecom operator in India, is merging its business with the second largest operator Vodafone India Ltd., to create India’s largest telecom operator. A sales note by CLSA Sales team indicated that the value of Idea Cellular is likely to double in the next three years.
Year-to-date share prices of Idea Cellular have risen 7.6 percent, as against a 14 percent rise of the S&P BSE Telecom Index. Forty-three percent of the analyst tracking the company have a ‘sell’ rating on the stock.