"The shareholders of Reliance Communications at their meeting convened pursuant to the order of the National Company Law Tribunal (NCLT), have on Monday approved with 99.99 per cent majority for the Scheme of Arrangement for demerger of the wireless division of the company and Reliance Telecom Limited (RTL), a wholly-owned subsidiary of the company, into Aircel Limited and Dishnet Wireless Limited (the Scheme)," the company statement said.

It was also approved by shareholders of RTL at their meeting held on Monday pursuant to the order of the NCLT, the statement added.

The shareholders of Aircel have also approved the said scheme at their meeting held on April 22, 2017, convened under the order of the NCLT.

The company has already received approval from the Securities and Exchange Board of India, BSE, National Stock Exchange of India Limited and Competition Commission of India for the proposed Scheme of Arrangement.

The RCOM-Aircel merger will create a strong operator clearly ranked amongst India's top four telecom companies by customer base and revenues, also ranking amongst the top three operators by revenues in 12 important circles.

The statement said, the merged entity will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands, and will enjoy enhanced business continuity through extended validity of spectrum holdings till 2033-36.

"It will be one of India's largest private sector companies, with an asset base of over Rs 65,000 crore ($10 billion) and net worth of Rs 35,000 crore ($5.38 billion)," the statement said.

RCOM's overall debt including the deferred spectrum payment liability will be reduced by Rs 20,000 crore ($3.07 billion) and Aircel's debt will reduce by Rs 4,000 crore ($615 million), upon completion of the transaction.

A petition is being filed with the NCLT, Mumbai Bench, for approval of the said scheme.

The proposed transaction is subject to other necessary approvals. Post closing, RCOM and the present shareholders of Aircel will hold 50 per cent stake each in Aircel Limited.

RCOM shares were trading at Rs 34.45 per share, up 1.62 per cent in the BSE at 2.26 pm.