Idea Cellular stock dips over 4% on licence cancellation

Mobile operator Idea Cellular slipped by over 4 per cent in morning trade on the Bombay Stock Exchange (BSE) on Monday in the wake of the telecom ministry looking to cancel the company's licence in two states.

Jittery investors offloaded the company's shares on BSE where the stock fell 4.10 per cent to touch an early low of Rs 63. However, later, the scrip managed to trim some of its initial losses and was trading at Rs 64.30, down 2.13 per cent during the noon trade.

Similarly, on the National Stock Exchange, Idea lost 4.10 per cent to touch a low of Rs 63.

Telecom Regulatory Authority of India has recommended to the Department of Telecom (DoT) that licences of Idea should be cancelled in Karnataka and Punjab circles.

According to a DoT note: "Under Trai's recommendation, as on date (December 22, 2010) these licences are in violation of terms and conditions pertaining to roll-out obligations."

Meanwhile, the BSE barometer index Sensex was trading lower by 162.46 points at 19,288.99 in noon trade.