MUMBAI: The board of Vodafone Idea Ltd has approved the merger of Aditya Birla Telecom Ltd (ABTL) with itself while the latter holds an 11.15 per cent stake in telecom tower firm Indus Towers.

This amalgamation will help Vodafone Idea to have direct shareholding in Indus Towers. The approval has pushed the company one step closer towards monetizing the company's 11.15 per cent stake in Indus Towers to pare debt.

"The board of directors of Vodafone Idea Ltd (VIL) ... Has considered and approved a scheme of amalgamation of Aditya Birla Telecom Limited (ABTL), a wholly-owned subsidiary of the company, with the company," Vodafone Idea said in a BSE filing.

Now, the scheme is subject to approval of the National Company Law Tribunal, Ahmedabad, besides other approvals. However, there will be no change in the shareholding pattern of VIL after completion of the amalgamation.

Airtel through Bharti Infratel and British telecom firm Vodafone holds around 42 per cent stake each in Indus Towers and ABTL holds 11.15 per cent.