The rise in popularity of Jio’s 4G LTE services in India has been a disastrous nightmare for other telecom carriers. Further, the provision of free data and voice services has attracted more than 72 million to their service, thus, creating pressure on them. And looks like, the pressure is finally beginning to show, in the real sense.

Vodafone India is currently, confirmedly, involved in potential merger talks with Idea Cellular.

The market has been abuzz with speculations regarding the said Merger but both the parties involved in the transaction had dissolved any such rumors. Now however, a confirmation has surfaced in the documents filed by Vodafone’s UK parent with the London Stock Exchange.

These documents reveal that Vodafone’s parent has initiated merger talks with Aditya Birla Group for an all-share transaction. But, the company’s 42 percent stake in Indus Towers will remain unaffected by this potential transaction.

Vodafone confirms that it is in discussions with the Aditya Birla Group about an all share merger of Vodafone India (excluding Vodafone’s 42% stake in Indus Towers) and Idea. Any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafonedeconsolidating Vodafone India.

Post the confirmation of merger talks, Idea’s share prices saw a massive upsurge during the day. The shares opened at a mere Rs. 79.90 but has since peaked to a high of Rs. 100.40. The stock is currently trading up 25+ percent, with a stock price of Rs. 98.20. Vodafone, on the other hand, is also trading nearly 3 percent higher than its usual scrip on the LSE.

If this transaction eventually goes through, it would become the largest consolidation in the Indian telecom sector in recent history. It will hence, lead to the formation of the largest Indian telecom carrier giving Jio a run for its money. This merger will further intensify pricing wars between telco giant, which will prominently comprise of Idea, Jio, and Airtel.

The two companies are currently involved in preliminary discussions and not ready to share any specifics as of yet. But, analysts are of the opinion that this reverse merger will result in the listing of Vodafone on the stock exchange —  something which had to be done way earlier.