Videocon Telecom is planning to demerge its business into six separate entities for its six operational circles. Under the proposed demerger, the six new entities will each issue shares to the existing shareholders of Videocon Telecom. The proposed merger will be taken at the next meeting of Board of Directors, which is slated for end-October 2015. KPMG is advising Videocon Telecom for its demerger plan.

Currently, Videocon Telecom is owned by the parent company, Videocon Industries (14.52 per cent) while the remaining stake is held by group holding companies - Videocon Industries Electronics (68.34 per cent) and JTSPL (10 per cent).

The company had earlier reported to be in discussions with other operators for merger and acquisition in order to exit business in few circles while also evaluating spectrum trading option.